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90_SB0665ham001
LRB9000602EGfgam30
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The State Salary and Annuity Withholding Act
5 is amended by changing Sections 2, 4, 8, and 9 as follows:
6 (5 ILCS 365/2) (from Ch. 127, par. 352)
7 Sec. 2. Definitions. As used in this Act, unless the
8 context otherwise requires:
9 "Office" means the State Comptroller, the Board of
10 Trustees of the State Universities Retirement System, or the
11 Board of Trustees of any of the following institutions: the
12 University of Illinois, the Board of Trustees of Southern
13 Illinois University, Chicago State University, Eastern
14 Illinois University, Governors State University, Illinois
15 State University, Northeastern Illinois University, Northern
16 Illinois University, and Western Illinois University the
17 Board of Governors of State Colleges and Universities and the
18 universities and colleges under its jurisdiction and the
19 Board of Regents and the universities under its jurisdiction.
20 "Department" means any department, board, commission,
21 institution, officer, court, or any agency of the State
22 government, other than the University of Illinois, Southern
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1 Illinois University, Chicago State University, Eastern
2 Illinois University, Governors State University, Illinois
3 State University, Northeastern Illinois University, Northern
4 Illinois University, and Western Illinois University,
5 receiving State appropriations and having the power to
6 certify payrolls to the Comptroller authorizing payments of
7 salary or wages from such appropriations from any State fund
8 or from trust funds held by the State Treasurer; and the
9 Board of Trustees of the General Assembly Retirement System,
10 the Board of Trustees of the State Employees' Retirement
11 System of Illinois, and the Board of Trustees of the Judges
12 Retirement System of Illinois created respectively by
13 Articles 2, 14, and 18 of the "Illinois Pension Code.",
14 approved March 18, 1963, as heretofore amended;
15 "Employee" means any regular officer or employee who
16 receives salary or wages for personal service rendered to the
17 State of Illinois and, for the purpose of deduction for the
18 purchase of United States Savings Bonds, includes any State
19 contractual employee.;
20 "Annuitant" means a person receiving a service retirement
21 annuity allowance or ordinary or accidental disability
22 benefits under Article 2, Article 14, 15, or Article 18 of
23 the "Illinois Pension Code.", approved March 18, 1963, as
24 heretofore and hereafter amended;
25 "Annuity" means the service retirement annuity allowance
26 or accidental disability benefits received by an annuitant.
27 (Source: P.A. 89-4, eff. 1-1-96; revised 2-7-97.)
28 (5 ILCS 365/4) (from Ch. 127, par. 354)
29 Sec. 4. Authorization of withholding. An employee or
30 annuitant may authorize the withholding of a portion of his
31 salary, wages, or annuity for any one or more of the
32 following purposes:
33 (1) for purchase of United States Savings Bonds;
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1 (2) for payment of premiums on life or accident and
2 health insurance as defined in Section 4 of the "Illinois
3 Insurance Code", approved June 29, 1937, as amended, and for
4 payment of premiums on policies of automobile insurance as
5 defined in Section 143.13 of the "Illinois Insurance Code",
6 as amended, and the personal multiperil coverages commonly
7 known as homeowner's insurance. However, no portion of
8 salaries, wages or annuities may be withheld to pay premiums
9 on automobile, homeowner's, life or accident and health
10 insurance policies issued by any one insurance company or
11 insurance service company unless a minimum of 100 employees
12 or annuitants insured by that company authorize the
13 withholding by an Office within 6 months after such
14 withholding begins. If such minimum is not satisfied the
15 Office may discontinue withholding for such company. For any
16 insurance company or insurance service company which has not
17 previously had withholding, the Office may allow withholding
18 for premiums, where less than 100 policies have been written,
19 to cover a probationary period. An insurance company which
20 has discontinued withholding may reinstate it upon
21 presentation of facts indicating new management or
22 re-organization satisfactory to the Office;
23 (3) for payment to any labor organization designated by
24 the employee;
25 (4) for payment of dues to any association the
26 membership of which consists of State employees and former
27 State employees;
28 (5) for deposit in any credit union, in which State
29 employees are within the field of membership as a result of
30 their employment;
31 (6) for payment to or for the benefit of an institution
32 of higher education by an employee of that institution;
33 (7) for payment of parking fees at the underground
34 facility located south of the William G. Stratton State
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1 Office Building in Springfield, the parking ramp located at
2 401 South College Street, west of the William G. Stratton
3 State Office Building in Springfield, or at the parking
4 facilities located on the Urbana-Champaign campus of the
5 University of Illinois;.
6 (8) for voluntary payment to the State of Illinois of
7 amounts then due and payable to the State;.
8 (9) for investment purchases made as a participant in
9 College Savings Programs established pursuant to Section
10 30-15.8a of the School Code;.
11 (10) for voluntary payment to the Illinois Department of
12 Revenue of amounts due or to become due under the Illinois
13 Income Tax Act;
14 (11) for payment of optional contributions to a
15 retirement system subject to the provisions of the Illinois
16 Pension Code.
17 (Source: P.A. 88-161.)
18 (5 ILCS 365/8) (from Ch. 127, par. 358)
19 Sec. 8. Payment of certain amounts withheld.
20 (a) If a withholding authorization is for the purpose of
21 payment of insurance premiums or for payment to a labor
22 union, each Office shall make payments, as soon as payroll
23 warrants are prepared and verified, on behalf of the employee
24 or annuitant to the payee named in the authorization the
25 amount specified in the authorization. Such payments shall
26 be made by warrants prepared at the time the payroll is
27 processed.
28 (b) If a withholding authorization is for the purpose of
29 purchasing United States Savings Bonds, each Office, whenever
30 a sufficient sum has accumulated in the employee's account to
31 purchase a bond of the denomination directed by the employee
32 in his authorization, shall purchase such a United States
33 Savings Bond in the name designated by the employee and
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1 deliver it to the employee.
2 (c) If a withholding authorization is for the purpose of
3 payment of parking fees pursuant to paragraph 7 of Section 4,
4 the State Comptroller shall deposit 80% of the amount
5 withheld in the Capital Development Bond Retirement and
6 Interest Fund in the State Treasury and 20% of the amount
7 withheld in the State Parking Facility Maintenance Fund in
8 the State Treasury.
9 (d) If a withholding authorization is for the purpose of
10 payment of amounts due or to become due under the Illinois
11 Income Tax Act, the Office shall pay the amounts withheld
12 without delay directly to the Department of Revenue or to a
13 depositary designated by the Department of Revenue.
14 (Source: P.A. 83-619.)
15 (5 ILCS 365/9) (from Ch. 127, par. 359)
16 Sec. 9. Any authorization to withhold from the salary,
17 wages or annuity of an employee or annuitant shall terminate
18 and such withholding shall cease upon the happening of any of
19 the following events:
20 (1) termination of employment or termination of payment
21 of an annuity, as the case may be;
22 (2) written notice by the employee or annuitant of
23 cancellation of such former authorization, except that an
24 authorization to withhold for the payment of optional
25 contributions to a retirement system through an employer
26 pickup is irrevocable;
27 (3) expiration of the time during which such withholding
28 was authorized;
29 (4) when the total amount authorized to be withheld has
30 been so withheld.
31 Upon termination of authorization to purchase United
32 States Savings Bonds, any amount withheld from the salary or
33 wages of an employee for such purpose and which has not been
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1 so used shall be immediately remitted by each Office to the
2 person from whose salary or wages such amount was withheld.
3 (Source: Laws 1965, p. 1244.)
4 Section 10. The State Employees Group Insurance Act of
5 1971 is amended by changing Sections 3 and 6.6 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 (Text of Section before amendment by P.A. 89-507)
8 Sec. 3. Definitions. Unless the context otherwise
9 requires, the following words and phrases as used in this Act
10 shall have the following meanings. The Department may define
11 these and other words and phrases separately for the purpose
12 of implementing specific programs providing benefits under
13 this Act.
14 (a) "Administrative service organization" means any
15 person, firm or corporation experienced in the handling of
16 claims which is fully qualified, financially sound and
17 capable of meeting the service requirements of a contract of
18 administration executed with the Department.
19 (b) "Annuitant" means (1) an employee who retires, or
20 has retired, on or after January 1, 1966 on an immediate
21 annuity under the provisions of Articles 2, 14, 15 (including
22 an employee who has retired and is receiving a retirement
23 annuity under the an optional retirement program established
24 under Section 15-158.2 and who would also be eligible for a
25 retirement annuity had that person been a participant in the
26 State University Retirement System), paragraphs (b) or (c) of
27 Section 16-106, or Article 18 of the Illinois Pension Code;
28 (2) any person who was receiving group insurance coverage
29 under this Act as of March 31, 1978 by reason of his status
30 as an annuitant, even though the annuity in relation to which
31 such coverage was provided is a proportional annuity based on
32 less than the minimum period of service required for a
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1 retirement annuity in the system involved; (3) any person not
2 otherwise covered by this Act who has retired as a
3 participating member under Article 2 of the Illinois Pension
4 Code but is ineligible for the retirement annuity under
5 Section 2-119 of the Illinois Pension Code; (4) the spouse of
6 any person who is receiving a retirement annuity under
7 Article 18 of the Illinois Pension Code and who is covered
8 under a group health insurance program sponsored by a
9 governmental employer other than the State of Illinois and
10 who has irrevocably elected to waive his or her coverage
11 under this Act and to have his or her spouse considered as
12 the "annuitant" under this Act and not as a "dependent"; or
13 (5) an employee who retires, or has retired, from a qualified
14 position, as determined according to rules promulgated by the
15 Director, under a qualified local government or a qualified
16 rehabilitation facility or a qualified domestic violence
17 shelter or service. (For definition of "retired employee",
18 see (p) post).
19 (c) "Carrier" means (1) an insurance company, a
20 corporation organized under the Limited Health Service
21 Organization Act or the Voluntary Health Services Plan Act, a
22 partnership, or other nongovernmental organization, which is
23 authorized to do group life or group health insurance
24 business in Illinois, or (2) the State of Illinois as a
25 self-insurer.
26 (d) "Compensation" means salary or wages payable on a
27 regular payroll by the State Treasurer on a warrant of the
28 State Comptroller out of any State, trust or federal fund, or
29 by the Governor of the State through a disbursing officer of
30 the State out of a trust or out of federal funds, or by any
31 Department out of State, trust, federal or other funds held
32 by the State Treasurer or the Department, to any person for
33 personal services currently performed, and ordinary or
34 accidental disability benefits under Articles 2, 14, 15
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1 (including ordinary or accidental disability benefits under
2 the an optional retirement program established under Section
3 15-158.2), paragraphs (b) or (c) of Section 16-106, or
4 Article 18 of the Illinois Pension Code, for disability
5 incurred after January 1, 1966, or benefits payable under the
6 Workers' Compensation or Occupational Diseases Act or
7 benefits payable under a sick pay plan established in
8 accordance with Section 36 of the State Finance Act.
9 "Compensation" also means salary or wages paid to an employee
10 of any qualified local government or qualified rehabilitation
11 facility or a qualified domestic violence shelter or service.
12 (e) "Commission" means the State Employees Group
13 Insurance Advisory Commission authorized by this Act.
14 Commencing July 1, 1984, "Commission" as used in this Act
15 means the Illinois Economic and Fiscal Commission as
16 established by the Legislative Commission Reorganization Act
17 of 1984.
18 (f) "Contributory", when referred to as contributory
19 coverage, shall mean optional coverages or benefits elected
20 by the member toward the cost of which such member makes
21 contribution, or which are funded in whole or in part through
22 the acceptance of a reduction in earnings or the foregoing of
23 an increase in earnings by an employee, as distinguished from
24 noncontributory coverage or benefits which are paid entirely
25 by the State of Illinois without reduction of the member's
26 salary.
27 (g) "Department" means any department, institution,
28 board, commission, officer, court or any agency of the State
29 government receiving appropriations and having power to
30 certify payrolls to the Comptroller authorizing payments of
31 salary and wages against such appropriations as are made by
32 the General Assembly from any State fund, or against trust
33 funds held by the State Treasurer and includes boards of
34 trustees of the retirement systems created by Articles 2, 14,
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1 15, 16 and 18 of the Illinois Pension Code. "Department"
2 also includes the Illinois Comprehensive Health Insurance
3 Board and the Illinois Rural Bond Bank.
4 (h) "Dependent", when the term is used in the context of
5 the health and life plan, means a member's spouse and any
6 unmarried child (1) from birth to age 19 including an adopted
7 child, a child who lives with the member from the time of the
8 filing of a petition for adoption until entry of an order of
9 adoption, a stepchild or recognized child who lives with the
10 member in a parent-child relationship, or a child who lives
11 with the member if such member is a court appointed guardian
12 of the child, or (2) age 19 to 23 enrolled as a full-time
13 student in any accredited school, financially dependent upon
14 the member, and eligible as a dependent for Illinois State
15 income tax purposes, or (3) age 19 or over who is mentally or
16 physically handicapped as defined in the Illinois Insurance
17 Code. For the health plan only, the term "dependent" also
18 includes any person enrolled prior to the effective date of
19 this Section who is dependent upon the member to the extent
20 that the member may claim such person as a dependent for
21 Illinois State income tax deduction purposes; no other such
22 person may be enrolled.
23 (i) "Director" means the Director of the Illinois
24 Department of Central Management Services.
25 (j) "Eligibility period" means the period of time a
26 member has to elect enrollment in programs or to select
27 benefits without regard to age, sex or health.
28 (k) "Employee" means and includes each officer or
29 employee in the service of a department who (1) receives his
30 compensation for service rendered to the department on a
31 warrant issued pursuant to a payroll certified by a
32 department or on a warrant or check issued and drawn by a
33 department upon a trust, federal or other fund or on a
34 warrant issued pursuant to a payroll certified by an elected
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1 or duly appointed officer of the State or who receives
2 payment of the performance of personal services on a warrant
3 issued pursuant to a payroll certified by a Department and
4 drawn by the Comptroller upon the State Treasurer against
5 appropriations made by the General Assembly from any fund or
6 against trust funds held by the State Treasurer, and (2) is
7 employed full-time or part-time in a position normally
8 requiring actual performance of duty during not less than 1/2
9 of a normal work period, as established by the Director in
10 cooperation with each department, except that persons elected
11 by popular vote will be considered employees during the
12 entire term for which they are elected regardless of hours
13 devoted to the service of the State, and (3) except that
14 "employee" does not include any person who is not eligible by
15 reason of such person's employment to participate in one of
16 the State retirement systems under Articles 2, 14, 15 (either
17 the regular Article 15 system or the an optional retirement
18 program established under Section 15-158.2) or 18, or under
19 paragraph (b) or (c) of Section 16-106, of the Illinois
20 Pension Code, but such term does include persons who are
21 employed during the 6 month qualifying period under Article
22 14 of the Illinois Pension Code. Such term also includes any
23 person who (1) after January 1, 1966, is receiving ordinary
24 or accidental disability benefits under Articles 2, 14, 15
25 (including ordinary or accidental disability benefits under
26 the an optional retirement program established under Section
27 15-158.2), paragraphs (b) or (c) of Section 16-106, or
28 Article 18 of the Illinois Pension Code, for disability
29 incurred after January 1, 1966, (2) receives total permanent
30 or total temporary disability under the Workers' Compensation
31 Act or Occupational Disease Act as a result of injuries
32 sustained or illness contracted in the course of employment
33 with the State of Illinois, or (3) is not otherwise covered
34 under this Act and has retired as a participating member
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1 under Article 2 of the Illinois Pension Code but is
2 ineligible for the retirement annuity under Section 2-119 of
3 the Illinois Pension Code. However, a person who satisfies
4 the criteria of the foregoing definition of "employee" except
5 that such person is made ineligible to participate in the
6 State Universities Retirement System by clause (4) of the
7 first paragraph of Section 15-107 of the Illinois Pension
8 Code is also an "employee" for the purposes of this Act.
9 "Employee" also includes any person receiving or eligible for
10 benefits under a sick pay plan established in accordance with
11 Section 36 of the State Finance Act. "Employee" also includes
12 each officer or employee in the service of a qualified local
13 government, including persons appointed as trustees of
14 sanitary districts regardless of hours devoted to the service
15 of the sanitary district, and each employee in the service of
16 a qualified rehabilitation facility and each full-time
17 employee in the service of a qualified domestic violence
18 shelter or service, as determined according to rules
19 promulgated by the Director.
20 (l) "Member" means an employee, annuitant, retired
21 employee or survivor.
22 (m) "Optional coverages or benefits" means those
23 coverages or benefits available to the member on his or her
24 voluntary election, and at his or her own expense.
25 (n) "Program" means the group life insurance, health
26 benefits and other employee benefits designed and contracted
27 for by the Director under this Act.
28 (o) "Health plan" means a self-insured health insurance
29 program offered by the State of Illinois for the purposes of
30 benefiting employees by means of providing, among others,
31 wellness programs, utilization reviews, second opinions and
32 medical fee reviews, as well as for paying for hospital and
33 medical care up to the maximum coverage provided by the plan,
34 to its members and their dependents.
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1 (p) "Retired employee" means any person who would be an
2 annuitant as that term is defined herein but for the fact
3 that such person retired prior to January 1, 1966. Such term
4 also includes any person formerly employed by the University
5 of Illinois in the Cooperative Extension Service who would be
6 an annuitant but for the fact that such person was made
7 ineligible to participate in the State Universities
8 Retirement System by clause (4) of the first paragraph of
9 Section 15-107 of the Illinois Pension Code.
10 (q) "Survivor" means a person receiving an annuity as a
11 survivor of an employee or of an annuitant. "Survivor" also
12 includes: (1) the surviving dependent of a person who
13 satisfies the definition of "employee" except that such
14 person is made ineligible to participate in the State
15 Universities Retirement System by clause (4) of the first
16 paragraph of Section 15-107 of the Illinois Pension Code; and
17 (2) the surviving dependent of any person formerly employed
18 by the University of Illinois in the Cooperative Extension
19 Service who would be an annuitant except for the fact that
20 such person was made ineligible to participate in the State
21 Universities Retirement System by clause (4) of the first
22 paragraph of Section 15-107 of the Illinois Pension Code.
23 (r) "Medical services" means the services provided
24 within the scope of their licenses by practitioners in all
25 categories licensed under the Medical Practice Act of 1987.
26 (s) "Unit of local government" means any county,
27 municipality, township, school district, special district or
28 other unit, designated as a unit of local government by law,
29 which exercises limited governmental powers or powers in
30 respect to limited governmental subjects, any not-for-profit
31 association with a membership that primarily includes
32 townships and township officials, that has duties that
33 include provision of research service, dissemination of
34 information, and other acts for the purpose of improving
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1 township government, and that is funded wholly or partly in
2 accordance with Section 85-15 of the Township Code; any
3 not-for-profit corporation or association, with a membership
4 consisting primarily of municipalities, that operates its own
5 utility system, and provides research, training,
6 dissemination of information, or other acts to promote
7 cooperation between and among municipalities that provide
8 utility services and for the advancement of the goals and
9 purposes of its membership; and the Illinois Association of
10 Park Districts. "Qualified local government" means a unit of
11 local government approved by the Director and participating
12 in a program created under subsection (i) of Section 10 of
13 this Act.
14 (t) "Qualified rehabilitation facility" means any
15 not-for-profit organization that is accredited by the
16 Commission on Accreditation of Rehabilitation Facilities or
17 certified by the Department of Mental Health and
18 Developmental Disabilities to provide services to persons
19 with disabilities and which receives funds from the State of
20 Illinois for providing those services, approved by the
21 Director and participating in a program created under
22 subsection (j) of Section 10 of this Act.
23 (u) "Qualified domestic violence shelter or service"
24 means any Illinois domestic violence shelter or service and
25 its administrative offices funded by the Illinois Department
26 of Public Aid, approved by the Director and participating in
27 a program created under subsection (k) of Section 10.
28 (v) "TRS benefit recipient" means a person who:
29 (1) is not a "member" as defined in this Section;
30 and
31 (2) is receiving a monthly benefit or retirement
32 annuity under Article 16 of the Illinois Pension Code;
33 and
34 (3) either (i) has at least 8 years of creditable
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1 service under Article 16 of the Illinois Pension Code, or
2 (ii) was enrolled in the health insurance program offered
3 under that Article on January 1, 1996, or (iii) is the
4 survivor of a benefit recipient who had at least 8 years
5 of creditable service under Article 16 of the Illinois
6 Pension Code or was enrolled in the health insurance
7 program offered under that Article on the effective date
8 of this amendatory Act of 1995, or (iv) is a recipient or
9 survivor of a recipient of a disability benefit under
10 Article 16 of the Illinois Pension Code.
11 (w) "TRS dependent beneficiary" means a person who:
12 (1) is not a "member" or "dependent" as defined in
13 this Section; and
14 (2) is a TRS benefit recipient's: (A) spouse, (B)
15 dependent parent who is receiving at least half of his or
16 her support from the TRS benefit recipient, or (C)
17 unmarried natural or adopted child who is (i) under age
18 19, or (ii) enrolled as a full-time student in an
19 accredited school, financially dependent upon the TRS
20 benefit recipient, eligible as a dependent for Illinois
21 State income tax purposes, and either is under age 23 24
22 or was, on January 1, 1996, participating as a dependent
23 beneficiary in the health insurance program offered under
24 Article 16 of the Illinois Pension Code, or (iii) age 19
25 or over who is mentally or physically handicapped as
26 defined in the Illinois Insurance Code.
27 (x) "Military leave with pay and benefits" refers to
28 individuals in basic training for reserves, special/advanced
29 training, annual training, emergency call up, or activation
30 by the President of the United States with approved pay and
31 benefits.
32 (y) "Military leave without pay and benefits" refers to
33 individuals who enlist for active duty in a regular component
34 of the U.S. Armed Forces or other duty not specified or
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1 authorized under military leave with pay and benefits.
2 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
3 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
4 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
5 eff. 8-9-96; revised 8-23-96.)
6 (Text of Section after amendment by P.A. 89-507)
7 Sec. 3. Definitions. Unless the context otherwise
8 requires, the following words and phrases as used in this Act
9 shall have the following meanings. The Department may define
10 these and other words and phrases separately for the purpose
11 of implementing specific programs providing benefits under
12 this Act.
13 (a) "Administrative service organization" means any
14 person, firm or corporation experienced in the handling of
15 claims which is fully qualified, financially sound and
16 capable of meeting the service requirements of a contract of
17 administration executed with the Department.
18 (b) "Annuitant" means (1) an employee who retires, or
19 has retired, on or after January 1, 1966 on an immediate
20 annuity under the provisions of Articles 2, 14, 15 (including
21 an employee who has retired and is receiving a retirement
22 annuity under the an optional retirement program established
23 under Section 15-158.2 and who would also be eligible for a
24 retirement annuity had that person been a participant in the
25 State University Retirement System), paragraphs (b) or (c) of
26 Section 16-106, or Article 18 of the Illinois Pension Code;
27 (2) any person who was receiving group insurance coverage
28 under this Act as of March 31, 1978 by reason of his status
29 as an annuitant, even though the annuity in relation to which
30 such coverage was provided is a proportional annuity based on
31 less than the minimum period of service required for a
32 retirement annuity in the system involved; (3) any person not
33 otherwise covered by this Act who has retired as a
34 participating member under Article 2 of the Illinois Pension
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1 Code but is ineligible for the retirement annuity under
2 Section 2-119 of the Illinois Pension Code; (4) the spouse of
3 any person who is receiving a retirement annuity under
4 Article 18 of the Illinois Pension Code and who is covered
5 under a group health insurance program sponsored by a
6 governmental employer other than the State of Illinois and
7 who has irrevocably elected to waive his or her coverage
8 under this Act and to have his or her spouse considered as
9 the "annuitant" under this Act and not as a "dependent"; or
10 (5) an employee who retires, or has retired, from a qualified
11 position, as determined according to rules promulgated by the
12 Director, under a qualified local government or a qualified
13 rehabilitation facility or a qualified domestic violence
14 shelter or service. (For definition of "retired employee",
15 see (p) post).
16 (c) "Carrier" means (1) an insurance company, a
17 corporation organized under the Limited Health Service
18 Organization Act or the Voluntary Health Services Plan Act, a
19 partnership, or other nongovernmental organization, which is
20 authorized to do group life or group health insurance
21 business in Illinois, or (2) the State of Illinois as a
22 self-insurer.
23 (d) "Compensation" means salary or wages payable on a
24 regular payroll by the State Treasurer on a warrant of the
25 State Comptroller out of any State, trust or federal fund, or
26 by the Governor of the State through a disbursing officer of
27 the State out of a trust or out of federal funds, or by any
28 Department out of State, trust, federal or other funds held
29 by the State Treasurer or the Department, to any person for
30 personal services currently performed, and ordinary or
31 accidental disability benefits under Articles 2, 14, 15
32 (including ordinary or accidental disability benefits under
33 the an optional retirement program established under Section
34 15-158.2), paragraphs (b) or (c) of Section 16-106, or
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1 Article 18 of the Illinois Pension Code, for disability
2 incurred after January 1, 1966, or benefits payable under the
3 Workers' Compensation or Occupational Diseases Act or
4 benefits payable under a sick pay plan established in
5 accordance with Section 36 of the State Finance Act.
6 "Compensation" also means salary or wages paid to an employee
7 of any qualified local government or qualified rehabilitation
8 facility or a qualified domestic violence shelter or service.
9 (e) "Commission" means the State Employees Group
10 Insurance Advisory Commission authorized by this Act.
11 Commencing July 1, 1984, "Commission" as used in this Act
12 means the Illinois Economic and Fiscal Commission as
13 established by the Legislative Commission Reorganization Act
14 of 1984.
15 (f) "Contributory", when referred to as contributory
16 coverage, shall mean optional coverages or benefits elected
17 by the member toward the cost of which such member makes
18 contribution, or which are funded in whole or in part through
19 the acceptance of a reduction in earnings or the foregoing of
20 an increase in earnings by an employee, as distinguished from
21 noncontributory coverage or benefits which are paid entirely
22 by the State of Illinois without reduction of the member's
23 salary.
24 (g) "Department" means any department, institution,
25 board, commission, officer, court or any agency of the State
26 government receiving appropriations and having power to
27 certify payrolls to the Comptroller authorizing payments of
28 salary and wages against such appropriations as are made by
29 the General Assembly from any State fund, or against trust
30 funds held by the State Treasurer and includes boards of
31 trustees of the retirement systems created by Articles 2, 14,
32 15, 16 and 18 of the Illinois Pension Code. "Department"
33 also includes the Illinois Comprehensive Health Insurance
34 Board and the Illinois Rural Bond Bank.
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1 (h) "Dependent", when the term is used in the context of
2 the health and life plan, means a member's spouse and any
3 unmarried child (1) from birth to age 19 including an adopted
4 child, a child who lives with the member from the time of the
5 filing of a petition for adoption until entry of an order of
6 adoption, a stepchild or recognized child who lives with the
7 member in a parent-child relationship, or a child who lives
8 with the member if such member is a court appointed guardian
9 of the child, or (2) age 19 to 23 enrolled as a full-time
10 student in any accredited school, financially dependent upon
11 the member, and eligible as a dependent for Illinois State
12 income tax purposes, or (3) age 19 or over who is mentally or
13 physically handicapped as defined in the Illinois Insurance
14 Code. For the health plan only, the term "dependent" also
15 includes any person enrolled prior to the effective date of
16 this Section who is dependent upon the member to the extent
17 that the member may claim such person as a dependent for
18 Illinois State income tax deduction purposes; no other such
19 person may be enrolled.
20 (i) "Director" means the Director of the Illinois
21 Department of Central Management Services.
22 (j) "Eligibility period" means the period of time a
23 member has to elect enrollment in programs or to select
24 benefits without regard to age, sex or health.
25 (k) "Employee" means and includes each officer or
26 employee in the service of a department who (1) receives his
27 compensation for service rendered to the department on a
28 warrant issued pursuant to a payroll certified by a
29 department or on a warrant or check issued and drawn by a
30 department upon a trust, federal or other fund or on a
31 warrant issued pursuant to a payroll certified by an elected
32 or duly appointed officer of the State or who receives
33 payment of the performance of personal services on a warrant
34 issued pursuant to a payroll certified by a Department and
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1 drawn by the Comptroller upon the State Treasurer against
2 appropriations made by the General Assembly from any fund or
3 against trust funds held by the State Treasurer, and (2) is
4 employed full-time or part-time in a position normally
5 requiring actual performance of duty during not less than 1/2
6 of a normal work period, as established by the Director in
7 cooperation with each department, except that persons elected
8 by popular vote will be considered employees during the
9 entire term for which they are elected regardless of hours
10 devoted to the service of the State, and (3) except that
11 "employee" does not include any person who is not eligible by
12 reason of such person's employment to participate in one of
13 the State retirement systems under Articles 2, 14, 15 (either
14 the regular Article 15 system or the an optional retirement
15 program established under Section 15-158.2) or 18, or under
16 paragraph (b) or (c) of Section 16-106, of the Illinois
17 Pension Code, but such term does include persons who are
18 employed during the 6 month qualifying period under Article
19 14 of the Illinois Pension Code. Such term also includes any
20 person who (1) after January 1, 1966, is receiving ordinary
21 or accidental disability benefits under Articles 2, 14, 15
22 (including ordinary or accidental disability benefits under
23 the an optional retirement program established under Section
24 15-158.2), paragraphs (b) or (c) of Section 16-106, or
25 Article 18 of the Illinois Pension Code, for disability
26 incurred after January 1, 1966, (2) receives total permanent
27 or total temporary disability under the Workers' Compensation
28 Act or Occupational Disease Act as a result of injuries
29 sustained or illness contracted in the course of employment
30 with the State of Illinois, or (3) is not otherwise covered
31 under this Act and has retired as a participating member
32 under Article 2 of the Illinois Pension Code but is
33 ineligible for the retirement annuity under Section 2-119 of
34 the Illinois Pension Code. However, a person who satisfies
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1 the criteria of the foregoing definition of "employee" except
2 that such person is made ineligible to participate in the
3 State Universities Retirement System by clause (4) of the
4 first paragraph of Section 15-107 of the Illinois Pension
5 Code is also an "employee" for the purposes of this Act.
6 "Employee" also includes any person receiving or eligible for
7 benefits under a sick pay plan established in accordance with
8 Section 36 of the State Finance Act. "Employee" also includes
9 each officer or employee in the service of a qualified local
10 government, including persons appointed as trustees of
11 sanitary districts regardless of hours devoted to the service
12 of the sanitary district, and each employee in the service of
13 a qualified rehabilitation facility and each full-time
14 employee in the service of a qualified domestic violence
15 shelter or service, as determined according to rules
16 promulgated by the Director.
17 (l) "Member" means an employee, annuitant, retired
18 employee or survivor.
19 (m) "Optional coverages or benefits" means those
20 coverages or benefits available to the member on his or her
21 voluntary election, and at his or her own expense.
22 (n) "Program" means the group life insurance, health
23 benefits and other employee benefits designed and contracted
24 for by the Director under this Act.
25 (o) "Health plan" means a self-insured health insurance
26 program offered by the State of Illinois for the purposes of
27 benefiting employees by means of providing, among others,
28 wellness programs, utilization reviews, second opinions and
29 medical fee reviews, as well as for paying for hospital and
30 medical care up to the maximum coverage provided by the plan,
31 to its members and their dependents.
32 (p) "Retired employee" means any person who would be an
33 annuitant as that term is defined herein but for the fact
34 that such person retired prior to January 1, 1966. Such term
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1 also includes any person formerly employed by the University
2 of Illinois in the Cooperative Extension Service who would be
3 an annuitant but for the fact that such person was made
4 ineligible to participate in the State Universities
5 Retirement System by clause (4) of the first paragraph of
6 Section 15-107 of the Illinois Pension Code.
7 (q) "Survivor" means a person receiving an annuity as a
8 survivor of an employee or of an annuitant. "Survivor" also
9 includes: (1) the surviving dependent of a person who
10 satisfies the definition of "employee" except that such
11 person is made ineligible to participate in the State
12 Universities Retirement System by clause (4) of the first
13 paragraph of Section 15-107 of the Illinois Pension Code; and
14 (2) the surviving dependent of any person formerly employed
15 by the University of Illinois in the Cooperative Extension
16 Service who would be an annuitant except for the fact that
17 such person was made ineligible to participate in the State
18 Universities Retirement System by clause (4) of the first
19 paragraph of Section 15-107 of the Illinois Pension Code.
20 (r) "Medical services" means the services provided
21 within the scope of their licenses by practitioners in all
22 categories licensed under the Medical Practice Act of 1987.
23 (s) "Unit of local government" means any county,
24 municipality, township, school district, special district or
25 other unit, designated as a unit of local government by law,
26 which exercises limited governmental powers or powers in
27 respect to limited governmental subjects, any not-for-profit
28 association with a membership that primarily includes
29 townships and township officials, that has duties that
30 include provision of research service, dissemination of
31 information, and other acts for the purpose of improving
32 township government, and that is funded wholly or partly in
33 accordance with Section 85-15 of the Township Code; any
34 not-for-profit corporation or association, with a membership
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1 consisting primarily of municipalities, that operates its own
2 utility system, and provides research, training,
3 dissemination of information, or other acts to promote
4 cooperation between and among municipalities that provide
5 utility services and for the advancement of the goals and
6 purposes of its membership; and the Illinois Association of
7 Park Districts. "Qualified local government" means a unit of
8 local government approved by the Director and participating
9 in a program created under subsection (i) of Section 10 of
10 this Act.
11 (t) "Qualified rehabilitation facility" means any
12 not-for-profit organization that is accredited by the
13 Commission on Accreditation of Rehabilitation Facilities or
14 certified by the Department of Human Services (as successor
15 to the Department of Mental Health and Developmental
16 Disabilities) to provide services to persons with
17 disabilities and which receives funds from the State of
18 Illinois for providing those services, approved by the
19 Director and participating in a program created under
20 subsection (j) of Section 10 of this Act.
21 (u) "Qualified domestic violence shelter or service"
22 means any Illinois domestic violence shelter or service and
23 its administrative offices funded by the Department of Human
24 Services (as successor to the Illinois Department of Public
25 Aid), approved by the Director and participating in a program
26 created under subsection (k) of Section 10.
27 (v) "TRS benefit recipient" means a person who:
28 (1) is not a "member" as defined in this Section;
29 and
30 (2) is receiving a monthly benefit or retirement
31 annuity under Article 16 of the Illinois Pension Code;
32 and
33 (3) either (i) has at least 8 years of creditable
34 service under Article 16 of the Illinois Pension Code, or
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1 (ii) was enrolled in the health insurance program offered
2 under that Article on January 1, 1996, or (iii) is the
3 survivor of a benefit recipient who had at least 8 years
4 of creditable service under Article 16 of the Illinois
5 Pension Code or was enrolled in the health insurance
6 program offered under that Article on the effective date
7 of this amendatory Act of 1995, or (iv) is a recipient or
8 survivor of a recipient of a disability benefit under
9 Article 16 of the Illinois Pension Code.
10 (w) "TRS dependent beneficiary" means a person who:
11 (1) is not a "member" or "dependent" as defined in
12 this Section; and
13 (2) is a TRS benefit recipient's: (A) spouse, (B)
14 dependent parent who is receiving at least half of his or
15 her support from the TRS benefit recipient, or (C)
16 unmarried natural or adopted child who is (i) under age
17 19, or (ii) enrolled as a full-time student in an
18 accredited school, financially dependent upon the TRS
19 benefit recipient, eligible as a dependent for Illinois
20 State income tax purposes, and either is under age 23 24
21 or was, on January 1, 1996, participating as a dependent
22 beneficiary in the health insurance program offered under
23 Article 16 of the Illinois Pension Code, or (iii) age 19
24 or over who is mentally or physically handicapped as
25 defined in the Illinois Insurance Code.
26 (x) "Military leave with pay and benefits" refers to
27 individuals in basic training for reserves, special/advanced
28 training, annual training, emergency call up, or activation
29 by the President of the United States with approved pay and
30 benefits.
31 (y) "Military leave without pay and benefits" refers to
32 individuals who enlist for active duty in a regular component
33 of the U.S. Armed Forces or other duty not specified or
34 authorized under military leave with pay and benefits.
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1 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
2 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
3 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
4 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
5 (5 ILCS 375/6.6)
6 Sec. 6.6. Contributions to the Teacher Health Insurance
7 Security Fund.
8 (a) Beginning July 1, 1995, all active contributors of
9 the Teachers' Retirement System (established under Article 16
10 of the Illinois Pension Code) who are not employees of a
11 department as defined in Section 3 of this Act shall make
12 contributions toward the cost of annuitant and survivor
13 health benefits at the rate of 0.5% of salary.
14 These contributions shall be deducted by the employer and
15 paid to the System as service agent for the Department of
16 Central Management Services. The System may use the same
17 processes for collecting the contributions required by this
18 subsection that it uses to collect contributions received
19 from school districts and other covered employers under
20 Sections 16-154 and 16-155 of the Illinois Pension Code. An
21 employer may agree to pick up or pay the contributions
22 required under this subsection on behalf of the teacher; such
23 contributions shall be deemed to have been paid by the
24 teacher.
25 A person required to make contributions under this
26 subsection (a) who purchases optional service credit under
27 Article 16 of the Illinois Pension Code for a period services
28 actually performed after June 30, 1995 must also make a
29 contribution under this subsection for that optional credit,
30 at the applicable rate of 0.5% of the salary used in
31 computing the optional service credit, based on the required
32 employee contributions for that optional service credit, plus
33 the interest on this those employee contribution
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1 contributions. This contribution shall be collected by the
2 System as service agent for the Department of Central
3 Management Services. at the time of receiving The
4 contribution required under this subsection for the optional
5 service credit must be paid in full before any annuity based
6 on that credit begins.
7 (b) The Teachers' Retirement System shall promptly
8 deposit all moneys collected under subsection (a) of this
9 Section into the Teacher Health Insurance Security Fund
10 created in Section 6.5 of this Act. The moneys collected
11 under this Section shall be used only for the purposes
12 authorized in Section 6.5 of this Act and shall not be
13 considered to be assets of the Teachers' Retirement System.
14 Contributions made under this Section are not transferable to
15 other pension funds or retirement systems and are not
16 refundable upon termination of service.
17 (c) On or before November 15 of each year, the Board of
18 Trustees of the Teachers' Retirement System shall certify to
19 the Governor, the Director of Central Management Services,
20 and the State Comptroller its estimate of the total amount of
21 contributions to be paid under subsection (a) of this Section
22 6.6 for the next fiscal year. The certification shall
23 include a detailed explanation of the methods and information
24 that the Board relied upon in preparing its estimate. As
25 soon as possible after the effective date of this Section,
26 the Board shall submit its estimate for fiscal year 1996.
27 (d) Beginning in fiscal year 1996, on the first day of
28 each month, or as soon thereafter as may be practical, the
29 State Treasurer and the State Comptroller shall transfer from
30 the General Revenue Fund to the Teacher Health Insurance
31 Security Fund 1/12 of the annual amount appropriated for that
32 fiscal year to the State Comptroller for deposit into the
33 Teacher Health Insurance Security Fund under Section 1.3 of
34 the State Pension Funds Continuing Appropriation Act.
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1 (e) Except where otherwise specified in this Section,
2 the definitions that apply to Article 16 of the Illinois
3 Pension Code apply to this Section.
4 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
5 Section 15. The Illinois Income Tax Act is amended by
6 changing Section 804 as follows:
7 (35 ILCS 5/804) (from Ch. 120, par. 8-804)
8 Sec. 804. Failure to Pay Estimated Tax.
9 (a) In general. In case of any underpayment of estimated
10 tax by a taxpayer, except as provided in subsection (d) or
11 (e), the taxpayer shall be liable to a penalty in an amount
12 determined at the rate prescribed by Section 3-3 of the
13 Uniform Penalty and Interest Act upon the amount of the
14 underpayment (determined under subsection (b)) for each
15 required installment.
16 (b) Amount of underpayment. For purposes of subsection
17 (a), the amount of the underpayment shall be the excess of:
18 (1) the amount of the installment which would be
19 required to be paid under subsection (c), over
20 (2) the amount, if any, of the installment paid on
21 or before the last date prescribed for payment.
22 (c) Amount of Required Installments.
23 (1) Amount.
24 (A) In General. Except as provided in
25 paragraph (2), the amount of any required
26 installment shall be 25% of the required annual
27 payment.
28 (B) Required Annual Payment. For purposes of
29 subparagraph (A), the term "required annual payment"
30 means the lesser of
31 (i) 90% of the tax shown on the return
32 for the taxable year, or if no return is filed,
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1 90% of the tax for such year, or
2 (ii) 100% of the tax shown on the return
3 of the taxpayer for the preceding taxable year
4 if a return showing a liability for tax was
5 filed by the taxpayer for the preceding taxable
6 year and such preceding year was a taxable year
7 of 12 months.
8 (2) Lower Required Installment where Annualized
9 Income Installment is Less Than Amount Determined Under
10 Paragraph (1).
11 (A) In General. In the case of any required
12 installment if a taxpayer establishes that the
13 annualized income installment is less than the
14 amount determined under paragraph (1),
15 (i) the amount of such required
16 installment shall be the annualized income
17 installment, and
18 (ii) any reduction in a required
19 installment resulting from the application of
20 this subparagraph shall be recaptured by
21 increasing the amount of the next required
22 installment determined under paragraph (1) by
23 the amount of such reduction, and by increasing
24 subsequent required installments to the extent
25 that the reduction has not previously been
26 recaptured under this clause.
27 (B) Determination of Annualized Income
28 Installment. In the case of any required
29 installment, the annualized income installment is
30 the excess, if any, of
31 (i) an amount equal to the applicable
32 percentage of the tax for the taxable year
33 computed by placing on an annualized basis the
34 net income for months in the taxable year
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1 ending before the due date for the installment,
2 over
3 (ii) the aggregate amount of any prior
4 required installments for the taxable year.
5 (C) Applicable Percentage.
6 In the case of the following The applicable
7 required installments: percentage is:
8 1st ............................... 22.5%
9 2nd ............................... 45%
10 3rd ............................... 67.5%
11 4th ............................... 90%
12 (D) Annualized Net Income; Individuals. For
13 individuals, net income shall be placed on an
14 annualized basis by:
15 (i) multiplying by 12, or in the case of
16 a taxable year of less than 12 months, by the
17 number of months in the taxable year, the net
18 income computed without regard to the standard
19 exemption for the months in the taxable year
20 ending before the month in which the
21 installment is required to be paid;
22 (ii) dividing the resulting amount by the
23 number of months in the taxable year ending
24 before the month in which such installment date
25 falls; and
26 (iii) deducting from such amount the
27 standard exemption allowable for the taxable
28 year, such standard exemption being determined
29 as of the last date prescribed for payment of
30 the installment.
31 (E) Annualized Net Income; Corporations. For
32 corporations, net income shall be placed on an
33 annualized basis by multiplying by 12 the taxable
34 income
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1 (i) for the first 3 months of the taxable
2 year, in the case of the installment required
3 to be paid in the 4th month,
4 (ii) for the first 3 months or for the
5 first 5 months of the taxable year, in the case
6 of the installment required to be paid in the
7 6th month,
8 (iii) for the first 6 months or for the
9 first 8 months of the taxable year, in the case
10 of the installment required to be paid in the
11 9th month, and
12 (iv) for the first 9 months or for the
13 first 11 months of the taxable year, in the
14 case of the installment required to be paid in
15 the 12th month of the taxable year,
16 then dividing the resulting amount by the number of
17 months in the taxable year (3, 5, 6, 8, 9, or 11 as
18 the case may be).
19 (d) Exceptions. Notwithstanding the provisions of the
20 preceding subsections, the penalty imposed by subsection (a)
21 shall not be imposed if the taxpayer was not required to file
22 an Illinois income tax return for the preceding taxable year,
23 or if the taxpayer has underpaid taxes solely because of the
24 increased rate in effect during the period from July 1, 1989
25 through December 1989, or, for individuals, if the taxpayer
26 had no tax liability for the preceding taxable year and such
27 year was a taxable year of 12 months.
28 (e) The penalty imposed for underpayment of estimated
29 tax by subsection (a) of this Section shall not be imposed to
30 the extent that the Department or his designate determines,
31 pursuant to Section 3-8 of the Uniform Penalty and Interest
32 Act that the penalty should not be imposed.
33 (f) Definition of tax. For purposes of subsections (b)
34 and (c), the term "tax" means the excess of the tax imposed
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1 under Article 2 of this Act, over the amounts credited
2 against such tax under Sections 601(b) (3) and (4).
3 (g) Application of Section in case of tax withheld on
4 compensation. For purposes of applying this Section in the
5 case of an individual, tax withheld under Article 7 for the
6 taxable year shall be deemed a payment of estimated tax, and
7 an equal part of such amount shall be deemed paid on each
8 installment date for such taxable year, unless the taxpayer
9 establishes the dates on which all amounts were actually
10 withheld, in which case the amounts so withheld shall be
11 deemed payments of estimated tax on the dates on which such
12 amounts were actually withheld.
13 (g-5) Amounts withheld under the State Salary and
14 Annuity Withholding Act. An individual who has amounts
15 withheld under paragraph (10) of Section 4 of the State
16 Salary and Annuity Withholding Act may elect to have those
17 amounts treated as payments of estimated tax made on the
18 dates on which those amounts are actually withheld.
19 (i) Short taxable year. The application of this Section
20 to taxable years of less than 12 months shall be in
21 accordance with regulations prescribed by the Department.
22 The changes in this Section made by Public Act 84-127
23 shall apply to taxable years ending on or after January 1,
24 1986.
25 (Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
26 Section 20. The Illinois Pension Code is amended by
27 changing Sections 2-123, 2-126.1, 7-109.3, 7-111, 7-113,
28 7-116, 7-118, 7-132.2, 7-139, 7-145, 7-171, 7-172, 14-103.05,
29 14-104, 14-108, 14-118, 14-119, 14-120, 14-128, 14-130,
30 14-133, 14-133.1, 15-107, 15-131, 15-134, 15-136, 15-141,
31 15-142, 15-145, 15-146, 15-154, 15-157, 15-157.1, 15-158.2,
32 15-165, 15-185, 16-106, 16-140, 16-151, 16-155, 16-158.1,
33 16-179, 16-185, 16-187, 17-116.1, 18-133.1, 21-103, 21-109,
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1 and 21-115 and adding Sections 7-199.3, 15-136.4, 16-169.1,
2 16-181.3, 17-134.1, and 18-112.6 as follows:
3 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
4 Sec. 2-123. Refunds.
5 (a) A participant who ceases to be a member, other than
6 an annuitant, shall, upon written request, receive a refund
7 of his or her total contributions, without interest. The
8 refund shall include the additional contributions for the
9 automatic increase in retirement annuity. By accepting the
10 refund, a participant forfeits all accrued rights and
11 benefits in the System and loses credit for all service.
12 However, if he or she again becomes a member, he or she may
13 resume status as a participant and reestablish any forfeited
14 service credit by paying to the System the full amount
15 refunded, together with interest at 4% per annum from the
16 time the refund is paid to the date the member again becomes
17 a participant.
18 A former member of the General Assembly may reestablish
19 any service credit forfeited by acceptance of a refund by
20 paying to the System on or before February 1, 1993, the full
21 amount refunded, together with interest at 4% per annum from
22 the date of payment of the refund to the date of repayment.
23 When a member or former member owes money to the System,
24 interest at the rate of 4% per annum shall accrue and be
25 payable on such amounts owed beginning on the date of
26 termination of service as a member until the contributions
27 due have been paid in full.
28 (b) A participant who has no eligible survivor upon
29 becoming an annuitant or who terminates service with less
30 than 8 years of service is entitled to a refund of the
31 contributions for a survivor's annuity, without interest. If
32 such person later marries, a survivor's annuity shall not be
33 payable upon his or her death, unless the amount of such
-32- LRB9000602EGfgam30
1 refund is repaid to the System, together with interest at the
2 rate of 4% per year from the date of refund to the date of
3 repayment.
4 (c) If at the date of retirement or death of a
5 participant who served as an officer of the General Assembly,
6 the total period of such service is less than 4 years, the
7 additional contributions made by such member on the
8 additional salary as an officer shall be refunded unless the
9 participant served as an officer for at least 2 years and has
10 contributed the amount he or she would have contributed if he
11 or she had served as an officer for 4 years as provided in
12 Section 2-126.
13 (d) Upon the termination of the last survivor's annuity
14 payable to a survivor of a deceased participant, the excess,
15 if any, of the total contributions made by the participant
16 for retirement and survivor's annuity, without interest, over
17 the total amount of retirement and survivor's annuity
18 payments received by the participant and the participant's
19 survivors shall be refunded upon request:
20 (i) if there was a surviving spouse of the deceased
21 participant who was eligible for a survivor's annuity, to
22 the designated beneficiary of that spouse or, if the
23 designated beneficiary is deceased or there is no
24 designated beneficiary, to that spouse's estate;
25 (ii) if there was no eligible surviving spouse of
26 the deceased participant, to the designated beneficiary
27 of the deceased participant or, if the designated
28 beneficiary is deceased or there is no designated
29 beneficiary, to the deceased participant's estate.
30 Upon death of the last survivor of a participant and his
31 or her spouse, a death benefit shall be payable consisting of
32 the excess, if any, of the contributions made by the
33 participant for retirement and survivor's annuity, without
34 interest, over the total amount of retirement and survivor's
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1 annuity payments made by the System.
2 (e) Upon the death of a participant, if a survivor's
3 annuity is not payable under this Article, a beneficiary
4 designated by the participant shall be entitled to a refund
5 of all contributions made by the participant. If the
6 participant has not designated a refund beneficiary, the
7 surviving spouse shall be entitled to the refund of
8 contributions; if there is no surviving spouse, the
9 contributions shall be refunded to the participant's
10 surviving children, if any, and if no children survive, the
11 refund payment shall be made to the participant's estate.
12 (Source: P.A. 86-273; 87-1265.)
13 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
14 Sec. 2-126.1. Pickup Pick up of contributions.
15 (a) The State shall pick up the participant
16 contributions required under Section 2-126 for all salary
17 earned after December 31, 1981. The contributions so picked
18 up shall be treated as employer contributions in determining
19 tax treatment under the United States Internal Revenue Code.
20 The State shall pay these participant contributions from the
21 same source of funds which is used in paying salary to the
22 participant. The State may pick up these contributions by a
23 reduction in the cash salary of the participant. If
24 participant contributions are picked up they shall be treated
25 for all purposes of this Article 2 in the same manner as
26 participant contributions that were made prior to the date
27 that the pick up of contributions began.
28 (b) Subject to the requirements of federal law, a
29 participant may elect to have the employer pick up optional
30 contributions that the participant has elected to pay to the
31 System, and the contributions so picked up shall be treated
32 as employer contributions for the purposes of determining
33 federal tax treatment. The employer shall pick up the
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1 contributions by a reduction in the cash salary of the
2 participant and shall pay the contributions from the same
3 fund that is used to pay earnings to the participant. The
4 election to have optional contributions picked up is
5 irrevocable and the optional contributions may not thereafter
6 be prepaid, by direct payment or otherwise.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
9 Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
10 (a) "Sheriff's law enforcement employee" means:
11 (1) A county sheriff and all deputies, other than
12 special deputies, employed on a full time basis in the
13 office of the sheriff.
14 (2) A person who has elected to participate in this
15 Fund under Section 3-109.1 of this Code, and who is
16 employed by a participating municipality to perform
17 police duties.
18 (3) A law enforcement officer employed on a full
19 time basis by a Forest Preserve District, provided that
20 such officer shall be deemed a "sheriff's law enforcement
21 employee" for the purposes of this Article, and service
22 in that capacity shall be deemed to be service as a
23 sheriff's law enforcement employee, only if the board of
24 commissioners of the District have so elected by adoption
25 of an affirmative resolution. Such election, once made,
26 may not be rescinded.
27 (4) A person not eligible to participate in a fund
28 established under Article 3 of this Code who is employed
29 on a full-time basis by a participating municipality or
30 participating instrumentality to perform police duties at
31 an airport, but only if the governing authority of the
32 employer has approved sheriff's law enforcement employee
33 status for its airport police employees by adoption of an
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1 affirmative resolution. Such approval, once given, may
2 not be rescinded.
3 (b) An employee who is a sheriff's law enforcement
4 employee and prior to the time for which he is granted
5 military leave or authorized leave of absence shall receive
6 service credit in that capacity. Sheriff's law enforcement
7 employees shall not be entitled to out of State service
8 credit under Section 7-139.
9 (Source: P.A. 86-273; 87-850.)
10 (40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
11 Sec. 7-111. "Prior Service": The period beginning on
12 the day a participating employee first became an employee of
13 a municipality, or of an instrumentality thereof, or of a
14 municipality or instrumentality that was superseded by the
15 employing participating municipality, or of a participating
16 instrumentality, and ending on the effective date of
17 participation of the municipality or participating
18 instrumentality, or upon the latest termination of service
19 prior to such effective date, but excluding (a) the
20 intervening periods during which the employee was separated
21 from the service of the municipality and all
22 instrumentalities thereof, or of the participating
23 instrumentality, or (b) periods during which the employee was
24 employed in a position normally requiring less than 600 hours
25 of service during a year, and or (c) periods during which the
26 employee served by persons beginning participating employment
27 in a position normally requiring performance of duty less
28 than 1000 hours per year, if the with a participating
29 municipality or participating instrumentality adopted, which
30 prior to its effective the date of participation, it is
31 included and subject to this Article adopts a resolution or
32 ordinance excluding persons in such positions from
33 participation.
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1 (Source: P.A. 82-459.)
2 (40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
3 Sec. 7-113. "Creditable Service": All periods of prior
4 service or current service for which credits are granted
5 under the provisions of Section 7-139, including all periods
6 during which a participating employee was an employee of a
7 municipality or instrumentality which was superseded by the
8 employing participating municipality.
9 (Source: Laws 1967, p. 2091.)
10 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
11 Sec. 7-116. "Final rate of earnings":
12 (a) For retirement and survivor annuities, the monthly
13 earnings obtained by dividing the total earnings received by
14 the employee during the period of either (1) the 48
15 consecutive months of service within the last 120 months of
16 service in which his total earnings were the highest, or (2)
17 the employee's (his total period of service,) by the number
18 of months of service in such period.
19 (b) For death benefits, the higher of the rate
20 determined under paragraph (a) of this Section or total
21 earnings received in the last 12 months of service divided by
22 twelve. If the deceased employee has less than 12 months of
23 service, the monthly final rate shall be the monthly rate of
24 pay the employee was receiving when he began service.
25 (c) For disability benefits, the total earnings of a
26 participating employee in the last 12 calendar months of
27 service prior to the date he becomes disabled divided by 12.
28 (d) In computing the final rate of earnings: (1) the
29 earnings rate for all periods of prior service shall be
30 considered equal to the average earnings rate for the last 3
31 calendar years of prior service for which creditable service
32 is received under Section 7-139 most immediately preceding
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1 the effective date, or, if there is less than 3 years of
2 creditable prior service, the average for the total prior
3 service period for which creditable service is received under
4 Section 7-139; (2) for out of state service and authorized
5 leave, the earnings rate shall be the rate upon which service
6 credits are granted; (3) periods of military leave shall not
7 be considered; (4) the earnings rate for all periods of
8 disability shall be considered equal to the rate of earnings
9 upon which the employee's disability benefits are computed
10 for such periods; (5) the earnings to be considered for each
11 of the final three months of the final earnings period shall
12 not exceed 125% of the highest earnings of any other month in
13 the final earnings period; and (6) the annual amount of final
14 rate of earnings shall be the monthly amount multiplied by
15 the number of months of service normally required by the
16 position in a year.
17 (Source: P.A. 78-255.)
18 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
19 Sec. 7-118. "Beneficiary":
20 (a) The surviving spouse of an employee or of an
21 employee annuitant, or if no surviving spouse survives, the
22 person or persons designated by a participating employee or
23 employee annuitant, or if no person so designated survives,
24 or if no designation is on file, the estate of the employee
25 or employee annuitant. The person or persons designated by a
26 beneficiary annuitant, or if no person designated survives,
27 or if no designation is on file, the estate of the
28 beneficiary annuitant. The estate of a surviving spouse
29 annuitant where the employee or employee annuitant filed no
30 designation, or no person designated survives at the death of
31 a surviving spouse annuitant. Designations of beneficiaries
32 shall be in writing on forms prescribed by the board and
33 effective upon filing in the fund offices. The designation
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1 forms shall provide for contingent beneficiaries. Divorce,
2 dissolution or annulment of marriage revokes the designation
3 of an employee's former spouse as a beneficiary on a
4 designation executed before entry of judgment for divorce,
5 dissolution or annulment of marriage.
6 (b) Notwithstanding the foregoing, an employee, former
7 employee who has not yet received a retirement annuity or
8 separation benefit, or employee annuitant may elect to name
9 any person, trust or charity to be the primary beneficiary of
10 any death benefit payable by reason of his death. Such
11 election shall state specifically whether it is his intention
12 to exclude the spouse, shall be in writing, and may be
13 revoked at any time. Such election or revocation shall take
14 effect upon being filed in the fund offices.
15 (c) If a surviving spouse annuity is payable to a former
16 spouse upon the death of an employee annuitant, the former
17 spouse, unless designated by the employee annuitant after
18 dissolution of the marriage, shall not be the beneficiary for
19 the purposes of the $3,000 death benefit payable under
20 subparagraph 6 of Section 7-164. This benefit shall be paid
21 to the designated beneficiary of the employee annuitant or,
22 if there is no designation, then to the estate of the
23 employee annuitant.
24 (Source: P.A. 89-136, eff. 7-14-95.)
25 (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
26 Sec. 7-132.2. Regional office of education Educational
27 Service Regions.
28 (a) A regional office of education serving 2 Educational
29 Service Regions comprised of two or more counties, except
30 those serving including a county of 1,000,000 inhabitants or
31 more, formed pursuant to Article 3A of the School Code shall
32 be included within and be subject to this Article, effective
33 as of the effective date of consolidation. For the purpose
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1 of this Article, a regional office of education serving 2 an
2 Educational Service Region comprised of two or more counties
3 shall be considered a participating instrumentality but the
4 requirements of Sections 7-106 and 7-132 shall not apply to
5 it. Each county served by a regional office of education
6 that serves 2 in an Educational Service Region comprised of
7 two or more counties shall pay its proportional cost of the
8 office's region's municipality contributions. This cost
9 shall be included in the budget prepared under and
10 apportioned in the manner provided by Section 3A-7 of the
11 School Code. Each county may include the cost for its share
12 of the municipality contributions required for the regional
13 office of education region in its appropriation and tax levy
14 under Section 7-171 of this Article.
15 (b) At the request of the county, the Board may
16 designate any participating regional office of education
17 Educational Service Region to be a separate reporting entity
18 distinct from the county.
19 (Source: P.A. 87-740.)
20 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
21 Sec. 7-139. Credits and creditable service to employees.
22 (a) Each participating employee shall be granted credits
23 and creditable service, for purposes of determining the
24 amount of any annuity or benefit to which he or a beneficiary
25 is entitled, as follows:
26 1. For prior service: Each participating employee who is
27 an employee of a participating municipality or participating
28 instrumentality on the effective date shall be granted
29 creditable service, but no credits under paragraph 2 of this
30 subsection (a), for periods his entire period of prior
31 service for which credit has not been received under any
32 other pension fund or retirement system established under
33 this Code, as follows:.
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1 If the effective date of participation for the
2 participating municipality or participating instrumentality
3 is on or before January 1, 1998, creditable service shall be
4 granted for the entire period of prior service with that
5 employer without any employee contribution.
6 If the effective date of participation for the
7 participating municipality or participating instrumentality
8 is after January 1, 1998, creditable service shall be granted
9 for the last 20% of the period of prior service with that
10 employer, but no more than 5 years, without any employee
11 contribution. A participating employee may establish
12 creditable service for the remainder of the period of prior
13 service with that employer by making an application in
14 writing, accompanied by payment of an employee contribution
15 in an amount determined by the Fund, based on the employee
16 contribution rates in effect at the time of application for
17 the creditable service and the employee's salary rate on the
18 effective date of participation for that employer, plus
19 interest at the effective rate from the date of the prior
20 service to the date of payment. Application for this
21 creditable service may be made at any time while the employee
22 is still in service.
23 Any person who has withdrawn from the service of a
24 participating municipality or participating instrumentality
25 prior to the effective date, who reenters the service of the
26 same municipality or participating instrumentality after the
27 effective date and becomes a participating employee is
28 entitled to creditable service for prior service as otherwise
29 provided in this subdivision (a)(1) only if he or she renders
30 2 years of service as a participating employee after the
31 effective date. provided Application for such service must
32 be is made while in a participating status. The salary rate
33 to be used in the calculation of the required employee
34 contribution, if any, shall be the employee's salary rate at
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1 the time of first reentering service with the employer after
2 the employer's effective date of participation.
3 2. For current service, each participating employee
4 shall be credited with:
5 a. Additional credits of amounts equal to each
6 payment of additional contributions received from him
7 under Section 7-173, as of the date the corresponding
8 payment of earnings is payable to him.
9 b. Normal credits of amounts equal to each payment
10 of normal contributions received from him, as of the date
11 the corresponding payment of earnings is payable to him,
12 and normal contributions made for the purpose of
13 establishing out-of-state service credits as permitted
14 under the conditions set forth in paragraph 6 of this
15 subsection (a).
16 c. Municipality credits in an amount equal to 1.4
17 times the normal credits, except those established by
18 out-of-state service credits, as of the date of
19 computation of any benefit if these credits would
20 increase the benefit.
21 d. Survivor credits equal to each payment of
22 survivor contributions received from the participating
23 employee as of the date the corresponding payment of
24 earnings is payable, and survivor contributions made for
25 the purpose of establishing out-of-state service credits.
26 3. For periods of temporary and total and permanent
27 disability benefits, each employee receiving disability
28 benefits shall be granted creditable service for the period
29 during which disability benefits are payable. Normal and
30 survivor credits, based upon the rate of earnings applied for
31 disability benefits, shall also be granted if such credits
32 would result in a higher benefit to any such employee or his
33 beneficiary.
34 4. For authorized leave of absence without pay: A
-42- LRB9000602EGfgam30
1 participating employee shall be granted credits and
2 creditable service for periods of authorized leave of absence
3 without pay under the following conditions:
4 a. An application for credits and creditable
5 service is shall be submitted to the board while the
6 employee is in a status of active employment, and within
7 2 years after termination of the leave of absence period
8 for which credits and creditable service are sought.
9 b. Not more than 12 complete months of creditable
10 service for authorized leave of absence without pay shall
11 be counted for purposes of determining any benefits
12 payable under this Article.
13 c. Credits and creditable service shall be granted
14 for leave of absence only if such leave is approved by
15 the governing body of the municipality, including
16 approval of the estimated cost thereof to the
17 municipality as determined by the fund, and employee
18 contributions, plus interest at the effective rate
19 applicable for each year from the end of the period of
20 leave to date of payment, have been paid to the fund in
21 accordance with Section 7-173. The contributions shall
22 be computed upon the assumption earnings continued during
23 the period of leave at the rate in effect when the leave
24 began.
25 d. Benefits under the provisions of Sections 7-141,
26 7-146, 7-150 and 7-163 shall become payable to employees
27 on authorized leave of absence, or their designated
28 beneficiary, only if such leave of absence is creditable
29 hereunder, and if the employee has at least one year of
30 creditable service other than the service granted for
31 leave of absence. Any employee contributions due may be
32 deducted from any benefits payable.
33 e. No credits or creditable service shall be
34 allowed for leave of absence without pay during any
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1 period of prior service.
2 5. For military service: The governing body of a
3 municipality or participating instrumentality may elect to
4 allow creditable service to participating employees who leave
5 their employment to serve in the armed forces of the United
6 States for all periods of such service, provided that the
7 such person returns to active employment within 90 days after
8 completion of full time active duty, but no creditable
9 service shall be allowed such person for any period that can
10 be used in the computation of a pension or any other pay or
11 benefit, other than pay for active duty, for service in any
12 branch of the armed forces of the United States. If
13 necessary to the computation of any benefit, the board shall
14 establish municipality credits for participating employees
15 under this paragraph on the assumption that the employee
16 received earnings at the rate received at the time he left
17 the employment to enter the armed forces. A participating
18 employee in the armed forces shall not be considered an
19 employee during such period of service and no additional
20 death and no disability benefits are payable for death or
21 disability during such period.
22 Any participating employee who left his employment with a
23 municipality or participating instrumentality to serve in the
24 armed forces of the United States and who again became a
25 participating employee within 90 days after completion of
26 full time active duty by entering the service of a different
27 municipality or participating instrumentality, which has
28 elected to allow creditable service for periods of military
29 service under the preceding paragraph, shall also be allowed
30 creditable service for his period of military service on the
31 same terms that would apply if he had been employed, before
32 entering military service, by the municipality or
33 instrumentality which employed him after he left the military
34 service and the employer costs arising in relation to such
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1 grant of creditable service shall be charged to and paid by
2 that municipality or instrumentality.
3 Notwithstanding the foregoing, any participating employee
4 shall be entitled to creditable service as required by any
5 federal law relating to re-employment rights of persons who
6 served in the United States Armed Services. Such creditable
7 service shall be granted upon payment by the member of an
8 amount equal to the employee contributions which would have
9 been required had the employee continued in service at the
10 same rate of earnings during the military leave period, plus
11 interest at the effective rate.
12 5.1. In addition to any creditable service established
13 under paragraph 5 of this subsection (a), creditable service
14 may be granted for up to 24 months of service in the armed
15 forces of the United States.
16 In order to receive creditable service for military
17 service under this paragraph 5.1, a participating employee
18 must (1) apply to the Fund in writing and provide evidence of
19 the military service that is satisfactory to the Board; (2)
20 obtain the written approval of the current employer; and (3)
21 make contributions to the Fund equal to (i) the employee
22 contributions that would have been required had the service
23 been rendered as a member, plus (ii) an amount determined by
24 the board to be equal to the employer's normal cost of the
25 benefits accrued for that military service, plus (iii)
26 interest on items (i) and (ii) from the date of first
27 membership in the Fund to the date of payment. If payment is
28 made during the 6-month period that begins 3 months after the
29 effective date of this amendatory Act of 1997, the required
30 interest shall be at the rate of 2.5% per year, compounded
31 annually; otherwise, the required interest shall be
32 calculated at the regular interest rate.
33 6. For out-of-state service: Creditable service shall be
34 granted for service rendered to an out-of-state local
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1 governmental body under the following conditions: The
2 employee had participated and has irrevocably forfeited all
3 rights to benefits in the out-of-state public employees
4 pension system; the governing body of his participating
5 municipality or instrumentality authorizes the employee to
6 establish such service; the employee has 2 years current
7 service with this municipality or participating
8 instrumentality; the employee makes a payment of
9 contributions, which shall be computed at 8% (normal) plus 2%
10 (survivor) times length of service purchased times the
11 average rate of earnings for the first 2 years of service
12 with the municipality or participating instrumentality whose
13 governing body authorizes the service established plus
14 interest at the effective rate on the date such credits are
15 established, payable from the date the employee completes the
16 required 2 years of current service to date of payment. In
17 no case shall more than 120 months of creditable service be
18 granted under this provision.
19 7. For retroactive service: Any employee who could have
20 but did not elect to become a participating employee, or who
21 should have been a participant in the Municipal Public
22 Utilities Annuity and Benefit Fund before that fund was
23 superseded, may receive creditable service for the period of
24 service not to exceed 50 months; however, a current or former
25 county board member may establish credit under this paragraph
26 7 for more than 50 months of service as a member of the
27 county board if the excess over 50 months is approved by
28 resolution of the affected county board filed with the Fund
29 before January 1, 1999.
30 Any employee who is a participating employee on or after
31 September 24, 1981 and who was excluded from participation by
32 the age restrictions removed by Public Act 82-596 may receive
33 creditable service for the period, on or after January 1,
34 1979, excluded by the age restriction and, in addition, if
-46- LRB9000602EGfgam30
1 the governing body of the participating municipality or
2 participating instrumentality elects to allow creditable
3 service for all employees excluded by the age restriction
4 prior to January 1, 1979, for service during the period prior
5 to that date excluded by the age restriction. Any employee
6 who was excluded from participation by the age restriction
7 removed by Public Act 82-596 and who is not a participating
8 employee on or after September 24, 1981 may receive
9 creditable service for service after January 1, 1979.
10 Creditable service under this paragraph shall be granted upon
11 payment of the employee contributions which would have been
12 required had he participated, with interest at the effective
13 rate for each year from the end of the period of service
14 established to date of payment.
15 8. For accumulated unused sick leave: A participating
16 employee who is applying for a retirement annuity shall be
17 entitled to creditable service for that portion of the
18 employee's his accumulated unused sick leave for which
19 payment is not received, as follows:
20 a. Sick leave days shall be limited to those
21 accumulated under a sick leave plan established by a
22 participating municipality or participating
23 instrumentality which is available to all employees or a
24 class of employees.
25 b. Only sick leave days accumulated with a
26 participating municipality or participating
27 instrumentality with which the employee was in service
28 within 60 days of the effective date of his retirement
29 annuity shall be credited; If the employee was in service
30 with more than one employer during this period only the
31 sick leave days with the employer with which the employee
32 has the greatest number of unpaid sick leave days shall
33 be considered.
34 c. The creditable service granted shall be
-47- LRB9000602EGfgam30
1 considered solely for the purpose of computing the amount
2 of the retirement annuity and shall not be used to
3 establish any minimum service period required by any
4 provision of the Illinois Pension Code, the effective
5 date of the retirement annuity, or the final rate of
6 earnings.
7 d. The creditable service shall be at the rate of
8 1/20 of a month for each full sick day, provided that no
9 more than 12 months may be credited under this
10 subdivision 8.
11 e. Employee contributions shall not be required for
12 creditable service under this subdivision 8.
13 f. Each participating municipality and
14 participating instrumentality with which an employee has
15 service within 60 days of the effective date of his
16 retirement annuity shall certify to the board the number
17 of accumulated unpaid sick leave days credited to the
18 employee at the time of termination of service.
19 9. For service transferred from another system: Credits
20 and creditable service shall be granted for service under
21 Article 3, 4, 5, 14 or 16 of this Act, to any active member
22 of this Fund, and to any inactive member who has been a
23 county sheriff, upon transfer of such credits pursuant to
24 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
25 payment by the member of the amount by which (1) the employer
26 and employee contributions that would have been required if
27 he had participated in this Fund as a sheriff's law
28 enforcement employee during the period for which credit is
29 being transferred, plus interest thereon at the effective
30 rate for each year, compounded annually, from the date of
31 termination of the service for which credit is being
32 transferred to the date of payment, exceeds (2) the amount
33 actually transferred to the Fund. Such transferred service
34 shall be deemed to be service as a sheriff's law enforcement
-48- LRB9000602EGfgam30
1 employee for the purposes of Section 7-142.1.
2 (b) Creditable service - amount: 1. One month of
3 creditable service shall be allowed for each month for which
4 a participating employee made contributions as required under
5 Section 7-173, or for which creditable service is otherwise
6 granted hereunder. Not more than 1 month of service shall be
7 credited and counted for 1 calendar month, and not more than
8 1 year of service shall be credited and counted for any
9 calendar year. A calendar month means a nominal month
10 beginning on the first day thereof, and a calendar year means
11 a year beginning January 1 and ending December 31.
12 2. A seasonal employee shall be given 12 months of
13 creditable service if he renders the number of months of
14 service normally required by the position in a 12-month
15 period and he remains in service for the entire 12-month
16 period. Otherwise a fractional year of service in the number
17 of months of service rendered shall be credited.
18 3. An intermittent employee shall be given creditable
19 service for only those months in which a contribution is made
20 under Section 7-173.
21 (c) No application for correction of credits or
22 creditable service shall be considered unless the board
23 receives an application for correction while (1) the
24 applicant is a participating employee and in active
25 employment with a participating municipality or
26 instrumentality, or (2) while the applicant is actively
27 participating in a pension fund or retirement system which is
28 a participating system under the Retirement Systems
29 Reciprocal Act. A participating employee or other applicant
30 shall not be entitled to credits or creditable service unless
31 the required employee contributions are made in a lump sum or
32 in installments made in accordance with board rule.
33 (d) Upon the granting of a retirement, surviving spouse
34 or child annuity, a death benefit or a separation benefit, on
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1 account of any employee, all individual accumulated credits
2 shall thereupon terminate. Upon the withdrawal of additional
3 contributions, the credits applicable thereto shall thereupon
4 terminate.
5 (Source: P.A. 86-273; 86-1028; 87-740.)
6 (40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
7 Sec. 7-145. Reversionary annuities.
8 (a) An employee entitled to a retirement annuity may
9 elect to provide a reversionary annuity for a beneficiary if,
10 at the time such retirement annuity begins:
11 1. Under the provisions of paragraph (a) 1 of Section
12 7-142 he is entitled to an immediate annuity of at least $10
13 per month; and
14 2. His accumulated additional and optional credits are
15 sufficient to provide a reversionary annuity, of at least $10
16 per month, for the beneficiary.
17 (b) An election shall become effective only:
18 1. If a written notice thereof by the employee is
19 received by the board together with his application for
20 retirement annuity; and
21 2. If the amount of the beneficiary's reversionary
22 annuity specified in the notice is not less than $10 nor more
23 than that which can be provided, at the time, by the
24 accumulation of additional and optional credits.
25 (c) The amount of the reversionary annuity shall be that
26 specified in the notice of election.
27 (d) Reversionary annuity shall begin the first day of
28 the month following the month in which the last payment of
29 the employee annuity is payable because of death, provided
30 the beneficiary is alive at such time. If the beneficiary
31 does not survive the annuitant, no reversionary annuity shall
32 be payable, but only the death benefit as provided in
33 Sections 7-163 and 7-164.
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1 (e) No reversionary annuity shall be awarded to be
2 effective on or after January 1, 1986, but reversionary
3 annuities granted prior to that date shall continue to be
4 paid.
5 (Source: P.A. 84-812.)
6 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
7 Sec. 7-171. Finance; taxes.
8 (a) Each municipality other than a school district shall
9 appropriate an amount sufficient to provide for the current
10 municipality contributions required by Section 7-172 of this
11 Article, for the fiscal year for which the appropriation is
12 made and all amounts due for municipal contributions for
13 previous years. Those municipalities which have been assessed
14 an annual amount to amortize its unfunded obligation, as
15 provided in subparagraph 5 of paragraph (a) of Section 7-172
16 of this Article, shall include in the appropriation an amount
17 sufficient to pay the amount assessed. The appropriation
18 shall be based upon an estimate of assets available for
19 municipality contributions and liabilities therefor for the
20 fiscal year for which appropriations are to be made,
21 including funds available from levies for this purpose in
22 prior years.
23 (b) For the purpose of providing monies for municipality
24 contributions, beginning for the year in which a municipality
25 is included in this fund:
26 (1) A municipality other than a school district may
27 levy a tax which shall not exceed the amount appropriated
28 for municipality contributions.
29 (2) A school district may levy a tax in an amount
30 reasonably calculated at the time of the levy to provide
31 for the municipality contributions required under Section
32 7-172 of this Article for the fiscal years for which
33 revenues from the levy will be received and all amounts
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1 due for municipal contributions for previous years. Any
2 levy adopted before the effective date of this amendatory
3 Act of 1995 by a school district shall be considered
4 valid and authorized to the extent that the amount was
5 reasonably calculated at the time of the levy to provide
6 for the municipality contributions required under Section
7 7-172 for the fiscal years for which revenues from the
8 levy will be received and all amounts due for municipal
9 contributions for previous years. In no event shall a
10 budget adopted by a school district limit a levy of that
11 school district adopted under this Section.
12 (c) Any county which is served by a regional office of
13 education that serves 2 a part of an educational service
14 region comprised of two or more counties formed under Section
15 3A of the School Code may include in its appropriation an
16 amount sufficient to provide its proportionate share of the
17 municipality contributions for that regional office of
18 education of the region. The tax levy authorized by this
19 Section may include an amount necessary to provide monies for
20 this contribution.
21 (d) Any county that is a part of a multiple-county
22 health department or consolidated health department which is
23 formed under "An Act in relation to the establishment and
24 maintenance of county and multiple-county public health
25 departments", approved July 9, 1943, as amended, and which is
26 a participating instrumentality may include in the county's
27 appropriation an amount sufficient to provide its
28 proportionate share of municipality contributions of the
29 department. The tax levy authorized by this Section may
30 include the amount necessary to provide monies for this
31 contribution.
32 (e) Such tax shall be levied and collected in like
33 manner, with the general taxes of the municipality and shall
34 be in addition to all other taxes which the municipality is
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1 now or may hereafter be authorized to levy upon all taxable
2 property therein, and shall be exclusive of and in addition
3 to the amount of tax levied for general purposes under
4 Section 8-3-1 of the "Illinois Municipal Code", approved May
5 29, 1961, as amended, or under any other law or laws which
6 may limit the amount of tax which the municipality may levy
7 for general purposes. The tax may be levied by the governing
8 body of the municipality without being authorized as being
9 additional to all other taxes by a vote of the people of the
10 municipality.
11 (f) The county clerk of the county in which any such
12 municipality is located, in reducing tax levies shall not
13 consider any such tax as a part of the general tax levy for
14 municipality purposes, and shall not include the same in the
15 limitation of any other tax rate which may be extended.
16 (g) The amount of the tax to be levied in any year
17 shall, within the limits herein prescribed, be determined by
18 the governing body of the respective municipality.
19 (h) The revenue derived from any such tax levy shall be
20 used only for the purposes specified in this Article, and, as
21 collected, shall be paid to the treasurer of the municipality
22 levying the tax. Monies received by a county treasurer for
23 use in making contributions to a regional office of education
24 consolidated educational service region for its municipality
25 contributions shall be held by him for that purpose and paid
26 to the regional office of education region in the same manner
27 as other monies appropriated for the expense of the regional
28 office region.
29 (Source: P.A. 89-329, eff. 8-17-95.)
30 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
31 Sec. 7-172. Contributions by participating
32 municipalities and participating instrumentalities.
33 (a) Each participating municipality and each
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1 participating instrumentality shall make payment to the fund
2 as follows:
3 1. municipality contributions in an amount
4 determined by applying the municipality contribution rate
5 to each payment of earnings paid to each of its
6 participating employees;
7 2. an amount equal to the employee contributions
8 provided by paragraphs (a) and (b) of Section 7-173,
9 whether or not the employee contributions are withheld as
10 permitted by that Section;
11 3. all accounts receivable, together with interest
12 charged thereon, as provided in Section 7-209;
13 4. if it has no participating employees with
14 current earnings, an amount payable which, over a period
15 of 20 years beginning with the year following an award of
16 benefit, will amortize, at the effective rate for that
17 year, any negative balance in its municipality reserve
18 resulting from the award. This amount when established
19 will be payable as a separate contribution whether or not
20 it later has participating employees.
21 (b) A separate municipality contribution rate shall be
22 determined for each calendar year for all participating
23 municipalities together with all instrumentalities thereof.
24 The municipality contribution rate shall be determined for
25 participating instrumentalities as if they were participating
26 municipalities. The municipality contribution rate shall be
27 the sum of the following percentages:
28 1. The percentage of earnings of all the
29 participating employees of all participating
30 municipalities and participating instrumentalities which,
31 if paid over the entire period of their service, will be
32 sufficient when combined with all employee contributions
33 available for the payment of benefits, to provide all
34 annuities for participating employees, and the $3,000
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1 death benefit payable under Sections 7-158 and 7-164,
2 such percentage to be known as the normal cost rate.
3 2. The percentage of earnings of the participating
4 employees of each participating municipality and
5 participating instrumentalities necessary to adjust for
6 the difference between the present value of all benefits,
7 excluding temporary and total and permanent disability
8 and death benefits, to be provided for its participating
9 employees and the sum of its accumulated municipality
10 contributions and the accumulated employee contributions
11 and the present value of expected future employee and
12 municipality contributions pursuant to subparagraph 1 of
13 this paragraph (b). This adjustment shall be spread over
14 the remainder of the period of 40 years from the first of
15 the year following the date of determination.
16 3. The percentage of earnings of the participating
17 employees of all municipalities and participating
18 instrumentalities necessary to provide the present value
19 of all temporary and total and permanent disability
20 benefits granted during the most recent year for which
21 information is available.
22 4. The percentage of earnings of the participating
23 employees of all participating municipalities and
24 participating instrumentalities necessary to provide the
25 present value of the net single sum death benefits
26 expected to become payable from the reserve established
27 under Section 7-206 during the year for which this rate
28 is fixed.
29 5. The percentage of earnings necessary to meet any
30 deficiency arising in the Terminated Municipality
31 Reserve.
32 (c) A separate municipality contribution rate shall be
33 computed for each participating municipality or participating
34 instrumentality for its sheriff's law enforcement employees.
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1 A separate municipality contribution rate shall be
2 computed for the sheriff's law enforcement employees of each
3 forest preserve district that elects to have such employees.
4 For the period from January 1, 1986 to December 31, 1986,
5 such rate shall be the forest preserve district's regular
6 rate plus 2%.
7 In the event that the Board determines that there is an
8 actuarial deficiency in the account of any municipality with
9 respect to a person who has elected to participate in the
10 Fund under Section 3-109.1 of this Code, the Board may adjust
11 the municipality's contribution rate so as to make up that
12 deficiency over such reasonable period of time as the Board
13 may determine.
14 (d) The Board may establish a separate municipality
15 contribution rate for all employees who are program
16 participants employed under the Federal Comprehensive
17 Employment Training Act by all of the participating
18 municipalities and instrumentalities. The Board may also
19 provide that, in lieu of a separate municipality rate for
20 these employees, a portion of the municipality contributions
21 for such program participants shall be refunded or an extra
22 charge assessed so that the amount of municipality
23 contributions retained or received by the fund for all CETA
24 program participants shall be an amount equal to that which
25 would be provided by the separate municipality contribution
26 rate for all such program participants. Refunds shall be
27 made to prime sponsors of programs upon submission of a claim
28 therefor and extra charges shall be assessed to participating
29 municipalities and instrumentalities. In establishing the
30 municipality contribution rate as provided in paragraph (b)
31 of this Section, the use of a separate municipality
32 contribution rate for program participants or the refund of a
33 portion of the municipality contributions, as the case may
34 be, may be considered.
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1 (e) Computations of municipality contribution rates for
2 the following calendar year shall be made prior to the
3 beginning of each year, from the information available at the
4 time the computations are made, and on the assumption that
5 the employees in each participating municipality or
6 participating instrumentality at such time will continue in
7 service until the end of such calendar year at their
8 respective rates of earnings at such time.
9 (f) Any municipality which is the recipient of State
10 allocations representing that municipality's contributions
11 for retirement annuity purposes on behalf of its employees as
12 provided in Section 12-21.16 of the Illinois Public Aid Code
13 shall pay the allocations so received to the Board for such
14 purpose. Estimates of State allocations to be received
15 during any taxable year shall be considered in the
16 determination of the municipality's tax rate for that year
17 under Section 7-171. If a special tax is levied under
18 Section 7-171, none of the proceeds may be used to reimburse
19 the municipality for the amount of State allocations received
20 and paid to the Board. Any multiple-county or consolidated
21 health department which receives contributions from a county
22 under Section 11.2 of "An Act in relation to establishment
23 and maintenance of county and multiple-county health
24 departments", approved July 9, 1943, as amended, or
25 distributions under Section 3 of the Department of Public
26 Health Act, shall use these only for municipality
27 contributions by the health department.
28 (g) Municipality contributions for the several purposes
29 specified shall, for township treasurers and employees in the
30 offices of the township treasurers who meet the qualifying
31 conditions for coverage hereunder, be allocated among the
32 several school districts and parts of school districts
33 serviced by such treasurers and employees in the proportion
34 which the amount of school funds of each district or part of
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1 a district handled by the treasurer bears to the total amount
2 of all school funds handled by the treasurer.
3 From the funds subject to allocation among districts and
4 parts of districts pursuant to the School Code, the trustees
5 shall withhold the proportionate share of the liability for
6 municipality contributions imposed upon such districts by
7 this Section, in respect to such township treasurers and
8 employees and remit the same to the Board.
9 The municipality contribution rate for an educational
10 service center shall initially be the same rate for each year
11 as the regional office of education consolidated educational
12 service region or school district which serves as its
13 administrative agent. When actuarial data become available,
14 a separate rate shall be established as provided in
15 subparagraph (i) of this Section.
16 The municipality contribution rate for a public agency,
17 other than a vocational education cooperative, formed under
18 the Intergovernmental Cooperation Act shall initially be the
19 average rate for the municipalities which are parties to the
20 intergovernmental agreement. When actuarial data become
21 available, a separate rate shall be established as provided
22 in subparagraph (i) of this Section.
23 (h) Each participating municipality and participating
24 instrumentality shall make the contributions in the amounts
25 provided in this Section in the manner prescribed from time
26 to time by the Board and all such contributions shall be
27 obligations of the respective participating municipalities
28 and participating instrumentalities to this fund. The
29 failure to deduct any employee contributions shall not
30 relieve the participating municipality or participating
31 instrumentality of its obligation to this fund. Delinquent
32 payments of contributions due under this Section may, with
33 interest, be recovered by civil action against the
34 participating municipalities or participating
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1 instrumentalities. Municipality contributions, other than
2 the amount necessary for employee contributions and Social
3 Security contributions, for periods of service by employees
4 from whose earnings no deductions were made for employee
5 contributions to the fund, may be charged to the municipality
6 reserve for the municipality or participating
7 instrumentality.
8 (i) Contributions by participating instrumentalities
9 shall be determined as provided herein except that the
10 percentage derived under subparagraph 2 of paragraph (b) of
11 this Section, and the amount payable under subparagraph 5 of
12 paragraph (a) of this Section, shall be based on an
13 amortization period of 10 years.
14 (Source: P.A. 86-273; 87-850.)
15 (40 ILCS 5/7-199.3 new)
16 Sec. 7-199.3. To establish and administer deferred
17 compensation and tax-deferred annuity programs for units of
18 local government.
19 The Board may establish and administer deferred
20 compensation, tax deferred annuity, and similar tax-savings
21 programs for employees of units of local government, which
22 shall be known as the "IMRF-Plus" program. The program shall
23 provide for the Board to review proposed investment offerings
24 and shall require that only investments determined to be
25 acceptable by the Board may be used for investing
26 compensation contributed to the program.
27 The program shall include appropriate provisions
28 pertaining to its day to day operation, including methods of
29 electing to contribute income, methods of changing the amount
30 of income contributed, methods of selecting from among
31 investment options available under the program, and any other
32 provisions that the Board may deem appropriate.
33 The program shall provide for the preparation of
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1 pamphlets describing the program and outlining the options
2 and opportunities available to local government employees
3 under the program. These pamphlets shall be distributed from
4 time to time to all eligible employees.
5 The program established under this Section shall not be
6 implemented or amended until the Board is satisfied that
7 compensation contributed under the program is not subject to
8 income tax for the year in which it is earned and that the
9 taxation of such compensation will be deferred until the time
10 of its distribution to the employee.
11 The program shall also provide for the recovery of the
12 expenses of its administration by charging those expenses
13 against the earnings from investments, by charging fees
14 equitably prorated among the participating local government
15 employees, or by some other appropriate and equitable method
16 determined by the Board. Different methods for recovery of
17 administrative expenses may be provided in relation to
18 different types of investment programs, and the Board may
19 provide for the allocation of administration expenses among
20 varying types of programs for this purpose.
21 The Board shall review and oversee the administration of
22 the program.
23 This Section does not limit the power or authority of any
24 unit of local government, school district, or institution
25 supported in whole or in part by public funds to establish
26 and administer any other deferred compensation plans or
27 tax-deferred annuity programs that may be authorized by law.
28 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
29 Sec. 14-103.05. Employee. Any person employed by a
30 Department who receives salary for personal services rendered
31 to the Department on a warrant issued pursuant to a payroll
32 voucher certified by a Department and drawn by the State
33 Comptroller upon the State Treasurer, including an elected
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1 official described in subparagraph (d) of Section 14-104,
2 shall become an employee for purpose of membership in the
3 Retirement System on the first day of such employment.
4 A person entering service on or after January 1, 1972 and
5 prior to January 1, 1984 shall become a member as a condition
6 of employment and shall begin making contributions as of the
7 first day of employment.
8 A person entering service on or after January 1, 1984
9 shall, upon completion of 6 months of continuous service
10 which is not interrupted by a break of more than 2 months,
11 become a member as a condition of employment. Contributions
12 shall begin the first of the month after completion of the
13 qualifying period.
14 The qualifying period of 6 months of service is not
15 applicable to: (1) a person who has been granted credit for
16 service in a position covered by the State Universities
17 Retirement System, the Teachers' Retirement System of the
18 State of Illinois, the General Assembly Retirement System, or
19 the Judges Retirement System of Illinois unless that service
20 has been forfeited under the laws of those systems; (2) a
21 person entering service on or after July 1, 1991 in a
22 noncovered position; or (3) a person to whom Section
23 14-108.2a or 14-108.2b applies.
24 The term "employee" does not include the following:
25 (1) members of the State Legislature, and persons
26 electing to become members of the General Assembly
27 Retirement System pursuant to Section 2-105;
28 (2) incumbents of offices normally filled by vote
29 of the people;
30 (3) except as otherwise provided in this Section,
31 any person appointed by the Governor with the advice and
32 consent of the Senate unless that person elects to
33 participate in this system;
34 (4) except as provided in Section 14-108.2, any
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1 person who is covered or eligible to be covered by the
2 Teachers' Retirement System of the State of Illinois, the
3 State Universities Retirement System, or the Judges
4 Retirement System of Illinois;
5 (5) an employee of a municipality or any other
6 political subdivision of the State;
7 (6) any person who becomes an employee after June
8 30, 1979 as a public service employment program
9 participant under the Federal Comprehensive Employment
10 and Training Act and whose wages or fringe benefits are
11 paid in whole or in part by funds provided under such
12 Act;
13 (7) enrollees of the Illinois Young Adult
14 Conservation Corps program, administered by the
15 Department of Natural Resources, authorized grantee
16 pursuant to Title VIII of the "Comprehensive Employment
17 and Training Act of 1973", 29 USC 993, as now or
18 hereafter amended;
19 (8) enrollees and temporary staff of programs
20 administered by the Department of Natural Resources under
21 the Youth Conservation Corps Act of 1970;
22 (9) any person who is a member of any professional
23 licensing or disciplinary board created under an Act
24 administered by the Department of Professional Regulation
25 or a successor agency or created or re-created after the
26 effective date of this amendatory Act of 1997, and who
27 receives per diem compensation rather than a salary,
28 notwithstanding that such per diem compensation is paid
29 by warrant issued pursuant to a payroll voucher; such
30 persons have never been included in the membership of
31 this System, and this amendatory Act of 1987 (P.A.
32 84-1472) is not intended to effect any change in the
33 status of such persons;
34 (10) any person who is a member of the Illinois
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1 Health Care Cost Containment Council, and receives per
2 diem compensation rather than a salary, notwithstanding
3 that such per diem compensation is paid by warrant issued
4 pursuant to a payroll voucher; such persons have never
5 been included in the membership of this System, and this
6 amendatory Act of 1987 is not intended to effect any
7 change in the status of such persons; or
8 (11) any person who is a member of the Oil and Gas
9 Board created by Section 1.2 of the Illinois Oil and Gas
10 Act, and receives per diem compensation rather than a
11 salary, notwithstanding that such per diem compensation
12 is paid by warrant issued pursuant to a payroll voucher.
13 (Source: P.A. 88-535; 89-246; eff. 8-4-95; 89-445, eff.
14 2-7-96.)
15 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
16 Sec. 14-104. Service for which contributions permitted.
17 Contributions provided for in this Section shall cover the
18 period of service granted, and be based upon employee's
19 compensation and contribution rate in effect on the date he
20 last became a member of the System; provided that for all
21 employment prior to January 1, 1969 the contribution rate
22 shall be that in effect for a noncovered employee on the date
23 he last became a member of the System. Contributions
24 permitted under this Section shall include regular interest
25 from the date an employee last became a member of the System
26 to date of payment.
27 These contributions must be paid in full before
28 retirement either in a lump sum or in installment payments in
29 accordance with such rules as may be adopted by the board.
30 (a) Any member may make contributions as required in
31 this Section for any period of service, subsequent to the
32 date of establishment, but prior to the date of membership.
33 (b) Any employee who had been previously excluded from
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1 membership because of age at entry and subsequently became
2 eligible may elect to make contributions as required in this
3 Section for the period of service during which he was
4 ineligible.
5 (c) An employee of the Department of Insurance who,
6 after January 1, 1944 but prior to becoming eligible for
7 membership, received salary from funds of insurance companies
8 in the process of rehabilitation, liquidation, conservation
9 or dissolution, may elect to make contributions as required
10 in this Section for such service.
11 (d) Any employee who rendered service in a State office
12 to which he was elected, or rendered service in the elective
13 office of Clerk of the Appellate Court prior to the date he
14 became a member, may make contributions for such service as
15 required in this Section. Any member who served by
16 appointment of the Governor under the Civil Administrative
17 Code of Illinois and did not participate in this System may
18 make contributions as required in this Section for such
19 service.
20 (e) Any person employed by the United States government
21 or any instrumentality or agency thereof from January 1, 1942
22 through November 15, 1946 as the result of a transfer from
23 State service by executive order of the President of the
24 United States shall be entitled to prior service credit
25 covering the period from January 1, 1942 through December 31,
26 1943 as provided for in this Article and to membership
27 service credit for the period from January 1, 1944 through
28 November 15, 1946 by making the contributions required in
29 this Section. A person so employed on January 1, 1944 but
30 whose employment began after January 1, 1942 may qualify for
31 prior service and membership service credit under the same
32 conditions.
33 (f) An employee of the Department of Labor of the State
34 of Illinois who performed services for and under the
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1 supervision of that Department prior to January 1, 1944 but
2 who was compensated for those services directly by federal
3 funds and not by a warrant of the Auditor of Public Accounts
4 paid by the State Treasurer may establish credit for such
5 employment by making the contributions required in this
6 Section. An employee of the Department of Agriculture of the
7 State of Illinois, who performed services for and under the
8 supervision of that Department prior to June 1, 1963, but was
9 compensated for those services directly by federal funds and
10 not paid by a warrant of the Auditor of Public Accounts paid
11 by the State Treasurer, and who did not contribute to any
12 other public employee retirement system for such service, may
13 establish credit for such employment by making the
14 contributions required in this Section.
15 (g) Any employee who executed a waiver of membership
16 within 60 days prior to January 1, 1944 may, at any time
17 while in the service of a department, file with the board a
18 rescission of such waiver. Upon making the contributions
19 required by this Section, the member shall be granted the
20 creditable service that would have been received if the
21 waiver had not been executed.
22 (h) Until May 1, 1990, an employee who was employed on a
23 full-time basis by a regional planning commission for at
24 least 5 continuous years may establish creditable service for
25 such employment by making the contributions required under
26 this Section, provided that any credits earned by the
27 employee in the commission's retirement plan have been
28 terminated.
29 (i) Any person who rendered full time contractual
30 services to the General Assembly as a member of a legislative
31 staff may establish service credit for up to 8 years of such
32 services by making the contributions required under this
33 Section, provided that application therefor is made not later
34 than July 1, 1991.
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1 (j) By paying the contributions otherwise required under
2 this Section, plus an amount determined by the Board to be
3 equal to the employer's normal cost of the benefit plus
4 interest, an employee may establish service credit for a
5 period of up to 2 years spent in active military service for
6 which he does not qualify for credit under Section 14-105,
7 provided that (1) he was not dishonorably discharged from
8 such military service, and (2) the amount of service credit
9 established by a member under this subsection (j), when added
10 to the amount of military service credit granted to the
11 member under subsection (b) of Section 14-105, shall not
12 exceed 5 years.
13 (k) An employee who was employed on a full-time basis by
14 the Illinois State's Attorneys Association Statewide
15 Appellate Assistance Service LEAA-ILEC grant project prior to
16 the time that project became the State's Attorneys Appellate
17 Service Commission, now the Office of the State's Attorneys
18 Appellate Prosecutor, an agency of State government, may
19 establish creditable service for not more than 60 months
20 service for such employment by making contributions required
21 under this Section.
22 (l) Any person who rendered contractual services to a
23 member of the General Assembly as a worker in the member's
24 district office may establish creditable service for up to 3
25 years of those contractual services by making the
26 contributions required under this Section. The System shall
27 determine a full-time salary equivalent for the purpose of
28 calculating the required contribution. To establish credit
29 under this subsection, the applicant must apply to the System
30 by March 1, 1998.
31 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
32 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
33 (Text of Section before amendment by P.A. 89-507)
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1 Sec. 14-108. Amount of retirement annuity. A member who
2 has contributed to the System for at least 12 months, shall
3 be entitled to a prior service annuity for each year of
4 certified prior service credited to him, except that a member
5 shall receive 1/3 of the prior service annuity for each year
6 of service for which contributions have been made and all of
7 such annuity shall be payable after the member has made
8 contributions for a period of 3 years. Proportionate amounts
9 shall be payable for service of less than a full year after
10 completion of at least 12 months.
11 The total period of service to be considered in
12 establishing the measure of prior service annuity shall
13 include service credited in the Teachers' Retirement System
14 of the State of Illinois and the State Universities
15 Retirement System for which contributions have been made by
16 the member to such systems; provided that at least 1 year of
17 the total period of 3 years prescribed for the allowance of a
18 full measure of prior service annuity shall consist of
19 membership service in this system for which credit has been
20 granted.
21 (a) In the case of a member who is a noncovered
22 employee, the retirement annuity for membership service and
23 prior service shall be 1.67% of final average compensation
24 for each of the first 10 years of service; 1.90% for each of
25 the next 10 years of service; 2.10% for each year of service
26 in excess of 20 but not exceeding 30; and 2.30% for each year
27 in excess of 30. Any service credit established as a covered
28 employee shall be considered in determining the applicable
29 percentages and computed as stated in paragraph (b).
30 (b) In the case of a covered employee, the retirement
31 annuity for membership service and prior service shall be
32 computed as stated in paragraph (a) for all service credit
33 established as a noncovered employee; for service credit
34 established as a covered employee it shall be 1% for each of
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1 the first 10 years of service; 1.10% for each of the next 10
2 years of service; 1.30% for each year of service in excess of
3 20 but not exceeding 30; and 1.50% for each year of service
4 in excess of 30. Any service credit established as a
5 noncovered employee shall be considered in determining the
6 applicable percentages.
7 (c) For a member with 30 but less than 35 years of
8 creditable service retiring after attaining age 55 but before
9 age 60, the retirement annuity shall be reduced by 1/2 of 1%
10 for each month that the member's age is under age 60 at the
11 time of retirement.
12 (d) A retirement annuity shall not exceed 75% of final
13 average compensation, subject to such extension as may result
14 from the application of Section 14-114 or Section 14-115.
15 (e) The retirement annuity payable to any covered
16 employee who is a member of the System and in service on
17 January 1, 1969, or in service thereafter in 1969 as a result
18 of legislation enacted by the Illinois General Assembly
19 transferring the member to State employment from county
20 employment in a county Department of Public Aid in counties
21 of 3,000,000 or more population, under a plan of coordination
22 with the Old Age, Survivors and Disability provisions
23 thereof, if not fully insured for Old Age Insurance payments
24 under the Federal Old Age, Survivors and Disability Insurance
25 provisions at the date of acceptance of a retirement annuity,
26 shall not be less than the amount for which the member would
27 have been eligible if coordination were not applicable.
28 (f) The retirement annuity payable to any covered
29 employee who is a member of the System and in service on
30 January 1, 1969, or in service thereafter in 1969 as a result
31 of the legislation designated in the immediately preceding
32 paragraph, if fully insured for Old Age Insurance payments
33 under the Federal Social Security Act at the date of
34 acceptance of a retirement annuity, shall not be less than an
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1 amount which when added to the Primary Insurance Benefit
2 payable to the member upon attainment of age 65 under such
3 Federal Act, will equal the annuity which would otherwise be
4 payable if the coordinated plan of coverage were not
5 applicable.
6 (g) In the case of a member who is a noncovered
7 employee, the retirement annuity for membership service as a
8 full-time security employee of the Department of Corrections
9 or security employee of the Department of Mental Health and
10 Developmental Disabilities shall be 1.9% of final average
11 compensation for each of the first 10 years of service; 2.1%
12 for each of the next 10 years of service; 2.25% for each year
13 of service in excess of 20 but not exceeding 30; and 2.5% for
14 each year in excess of 30.
15 (h) In the case of a covered employee, the retirement
16 annuity for membership service as a full-time security
17 employee of the Department of Corrections or security
18 employee of the Department of Mental Health and Developmental
19 Disabilities shall be 1.67% of final average compensation for
20 each of the first 10 years of service; 1.90% for each of the
21 next 10 years of service; 2.10% for each year of service in
22 excess of 20 but not exceeding 30; and 2.30% for each year in
23 excess of 30.
24 (i) For the purposes of this Section and Section 14-133
25 of this Act, the term "security employee of the Department of
26 Corrections" and the term "security employee of the
27 Department of Mental Health and Developmental Disabilities"
28 shall have the meanings ascribed to them in subsection (c) of
29 Section 14-110.
30 (j) The retirement annuity computed pursuant to
31 paragraphs (g) or (h) shall be applicable only to those
32 security employees of the Department of Corrections and
33 security employees of the Department of Mental Health and
34 Developmental Disabilities who have at least 20 years of
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1 membership service and who are not eligible for the
2 alternative retirement annuity provided under Section 14-110.
3 However, persons transferring to this System under Section
4 14-108.2 who have service credit under Article 16 of this
5 Code may count such service toward establishing their
6 eligibility under the 20-year service requirement of this
7 subsection; but such service may be used only for
8 establishing such eligibility, and not for the purpose of
9 increasing or calculating any benefit.
10 (k) In the case of a member who has at least 10 years of
11 creditable service as a court reporter, the retirement
12 annuity for service as a court reporter shall be 2.2% of
13 final average compensation for each year of such service as a
14 noncovered employee, and 1.5% of final average compensation
15 for each year of such service as a covered employee.
16 (Source: P.A. 86-272; 86-273; 86-1028.)
17 (Text of Section after amendment by P.A. 89-507)
18 Sec. 14-108. Amount of retirement annuity. A member who
19 has contributed to the System for at least 12 months, shall
20 be entitled to a prior service annuity for each year of
21 certified prior service credited to him, except that a member
22 shall receive 1/3 of the prior service annuity for each year
23 of service for which contributions have been made and all of
24 such annuity shall be payable after the member has made
25 contributions for a period of 3 years. Proportionate amounts
26 shall be payable for service of less than a full year after
27 completion of at least 12 months.
28 The total period of service to be considered in
29 establishing the measure of prior service annuity shall
30 include service credited in the Teachers' Retirement System
31 of the State of Illinois and the State Universities
32 Retirement System for which contributions have been made by
33 the member to such systems; provided that at least 1 year of
34 the total period of 3 years prescribed for the allowance of a
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1 full measure of prior service annuity shall consist of
2 membership service in this system for which credit has been
3 granted.
4 (a) In the case of a member who is a noncovered
5 employee, the retirement annuity for membership service and
6 prior service shall be 1.67% of final average compensation
7 for each of the first 10 years of service; 1.90% for each of
8 the next 10 years of service; 2.10% for each year of service
9 in excess of 20 but not exceeding 30; and 2.30% for each year
10 in excess of 30. Any service credit established as a covered
11 employee shall be considered in determining the applicable
12 percentages and computed as stated in paragraph (b).
13 (b) In the case of a covered employee, the retirement
14 annuity for membership service and prior service shall be
15 computed as stated in paragraph (a) for all service credit
16 established as a noncovered employee; for service credit
17 established as a covered employee it shall be 1% for each of
18 the first 10 years of service; 1.10% for each of the next 10
19 years of service; 1.30% for each year of service in excess of
20 20 but not exceeding 30; and 1.50% for each year of service
21 in excess of 30. Any service credit established as a
22 noncovered employee shall be considered in determining the
23 applicable percentages.
24 (c) For a member with 30 but less than 35 years of
25 creditable service retiring after attaining age 55 but before
26 age 60, the retirement annuity shall be reduced by 1/2 of 1%
27 for each month that the member's age is under age 60 at the
28 time of retirement.
29 (d) A retirement annuity shall not exceed 75% of final
30 average compensation, subject to such extension as may result
31 from the application of Section 14-114 or Section 14-115.
32 (e) The retirement annuity payable to any covered
33 employee who is a member of the System and in service on
34 January 1, 1969, or in service thereafter in 1969 as a result
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1 of legislation enacted by the Illinois General Assembly
2 transferring the member to State employment from county
3 employment in a county Department of Public Aid in counties
4 of 3,000,000 or more population, under a plan of coordination
5 with the Old Age, Survivors and Disability provisions
6 thereof, if not fully insured for Old Age Insurance payments
7 under the Federal Old Age, Survivors and Disability Insurance
8 provisions at the date of acceptance of a retirement annuity,
9 shall not be less than the amount for which the member would
10 have been eligible if coordination were not applicable.
11 (f) The retirement annuity payable to any covered
12 employee who is a member of the System and in service on
13 January 1, 1969, or in service thereafter in 1969 as a result
14 of the legislation designated in the immediately preceding
15 paragraph, if fully insured for Old Age Insurance payments
16 under the Federal Social Security Act at the date of
17 acceptance of a retirement annuity, shall not be less than an
18 amount which when added to the Primary Insurance Benefit
19 payable to the member upon attainment of age 65 under such
20 Federal Act, will equal the annuity which would otherwise be
21 payable if the coordinated plan of coverage were not
22 applicable.
23 (g) In the case of a member who is a noncovered
24 employee, the retirement annuity for membership service as a
25 full-time security employee of the Department of Corrections
26 or security employee of the Department of Human Services
27 shall be 1.9% of final average compensation for each of the
28 first 10 years of service; 2.1% for each of the next 10 years
29 of service; 2.25% for each year of service in excess of 20
30 but not exceeding 30; and 2.5% for each year in excess of 30.
31 (h) In the case of a covered employee, the retirement
32 annuity for membership service as a full-time security
33 employee of the Department of Corrections or security
34 employee of the Department of Human Services shall be 1.67%
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1 of final average compensation for each of the first 10 years
2 of service; 1.90% for each of the next 10 years of service;
3 2.10% for each year of service in excess of 20 but not
4 exceeding 30; and 2.30% for each year in excess of 30.
5 (i) For the purposes of this Section and Section 14-133
6 of this Act, the term "security employee of the Department of
7 Corrections" and the term "security employee of the
8 Department of Human Services" shall have the meanings
9 ascribed to them in subsection (c) of Section 14-110.
10 (j) The retirement annuity computed pursuant to
11 paragraphs (g) or (h) shall be applicable only to those
12 security employees of the Department of Corrections and
13 security employees of the Department of Human Services who
14 have at least 20 years of membership service and who are not
15 eligible for the alternative retirement annuity provided
16 under Section 14-110. However, persons transferring to this
17 System under Section 14-108.2 who have service credit under
18 Article 16 of this Code may count such service toward
19 establishing their eligibility under the 20-year service
20 requirement of this subsection; but such service may be used
21 only for establishing such eligibility, and not for the
22 purpose of increasing or calculating any benefit.
23 (k) In the case of a member who has at least 10 years of
24 creditable service as a court reporter, the retirement
25 annuity for service as a court reporter shall be 2.2% of
26 final average compensation for each year of such service as a
27 noncovered employee, and 1.5% of final average compensation
28 for each year of such service as a covered employee.
29 (Source: P.A. 89-507, eff. 7-1-97.)
30 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
31 Sec. 14-118. Widow's annuity - Conditions for payment.
32 A widow who exercises the right of election to receive an
33 annuity pursuant to this Section is entitled to a lump sum
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1 payment of $500 plus a widow's annuity, if
2 (1) she was married to the deceased member for at
3 least 1 year prior to his death or retirement, whichever
4 first occurs, and also on the day of the last termination
5 of his service as a State employee;
6 (2) the deceased member had at least 8 years of
7 creditable service if death occurred while in service, or
8 while on leave of absence from service, or while in
9 receipt of a nonoccupational disability or occupational
10 disability benefit, or after retirement;
11 (3) she was nominated exclusively to receive the
12 entire death benefit payable under this Article;
13 (4) death of the member occurred after withdrawal,
14 and he had fulfilled the prescribed age and service
15 conditions for establishing a right in a retirement
16 annuity; and
17 (5) she elected to receive the widow's annuity
18 within 6 months from the date of death of the employee,
19 otherwise the survivors annuity if applicable, shall be
20 payable.
21 If a widow's annuity beneficiary becomes entitled to a
22 survivors annuity and a widow's annuity, she shall elect to
23 receive only one of such annuities.
24 The surviving spouse of a person who (1) died on or after
25 January 1, 1985, (2) withdrew from service prior to August 1,
26 1953, (3) was receiving an annuity from the system at the
27 time of death, and (4) meets all other requirements of this
28 Section, shall be entitled to the benefits provided under
29 this Section.
30 A widow's annuity shall be payable beginning on the first
31 of the month following the date of death of the member if the
32 widow has then attained age 50 or, if she is under age 50 on
33 such date, on the first of the month following her attainment
34 of such age; provided, that if an unmarried child or children
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1 of the member under age 18 (or under age 22 if a full-time
2 student) also survive him, and the child or children are
3 under the care of the eligible widow, the widow's annuity
4 shall begin on the first of the month following the member's
5 death without regard to the age of the widow. If she is
6 under age 50 at the death of the member and she qualifies for
7 a widow's annuity, she is entitled to receive the lump sum
8 payment immediately upon application, but payment of the
9 widow's annuity shall be deferred as provided above.
10 The provision for a widow's annuity shall not be
11 construed to affect the payment of a reversionary annuity.
12 If a widow qualifies for more than one widow's annuity, or
13 for a widow's annuity and a survivors annuity, she shall
14 elect to receive only one of such annuities.
15 This Section shall not apply to the widow of any male
16 person who first became a member after July 19, 1961.
17 (Source: P.A. 84-1028.)
18 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
19 Sec. 14-119. Amount of widow's annuity.
20 (a) The widow's annuity shall be 50% of the amount of
21 retirement annuity payable to the member on the date of death
22 while on retirement if an annuitant, or on the date of his
23 death while in service if an employee, regardless of his age
24 on such date, or on the date of withdrawal if death occurred
25 after termination of service under the conditions prescribed
26 in the preceding Section.
27 (b) If an eligible widow, regardless of age, has in her
28 care any unmarried child or children of the member under age
29 18 (under age 22 if a full-time student), the widow's annuity
30 shall be increased in the amount of 5% of the retirement
31 annuity for each such child, but the combined payments for a
32 widow and children shall not exceed 66 2/3% of the member's
33 earned retirement annuity.
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1 The amount of retirement annuity from which the widow's
2 annuity is derived shall be that earned by the member without
3 regard to whether he attained age 60 prior to his withdrawal
4 under the conditions stated or prior to his death.
5 (c) Adopted children shall be considered as children of
6 the member only if the proceedings for adoption were
7 commenced at least 1 year prior to the member's death.
8 Marriage of a child shall render the child ineligible for
9 further consideration in the increase in the amount of the
10 widow's annuity.
11 Attainment of age 18 (age 22 if a full-time student) of a
12 child shall render a child him ineligible for further
13 consideration in the increase of the widow's annuity, but the
14 annuity to the widow shall be continued thereafter, without
15 regard to her age at that time.
16 (d) A widow's annuity payable on account of any covered
17 employee who shall have been a covered employee for at least
18 18 months shall be reduced by 1/2 of the amount of survivors
19 benefits to which his beneficiaries are eligible under the
20 provisions of the Federal Social Security Act, except that
21 (1) the amount of any widow's annuity payable under this
22 Article shall not be reduced by reason of any increase under
23 that Act which occurs after the offset required by this
24 subsection is first applied to that annuity, and (2) for
25 benefits granted on or after January 1, 1992, the offset
26 under this subsection (d) shall not exceed 50% of the amount
27 of widow's annuity otherwise payable.
28 (e) Upon the death of a recipient of a widow's annuity
29 the excess, if any, of the member's accumulated
30 contributions plus credited interest over all annuity
31 payments to the member and widow, exclusive of the $500 lump
32 sum payment, shall be paid to the named beneficiary of the
33 widow, or if none has been named, to the estate of the widow,
34 provided no reversionary annuity is payable.
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1 (f) On January 1, 1981, any recipient of a widow's
2 annuity who was receiving a widow's annuity on or before
3 January 1, 1971, shall have her widow's annuity then being
4 paid increased by 1% for each full year which has elapsed
5 from the date the widow's annuity began. On January 1, 1982,
6 any recipient of a widow's annuity who began receiving a
7 widow's annuity after January 1, 1971, but before January 1,
8 1981, shall have her widow's annuity then being paid
9 increased by 1% for each full year which has elapsed from the
10 date the widow's annuity began. On January 1, 1987, any
11 recipient of a widow's annuity who began receiving the
12 widow's annuity on or before January 1, 1977, shall have the
13 monthly widow's annuity increased by $1 for each full year
14 which has elapsed since the date the annuity began.
15 (g) Beginning January 1, 1990, every widow's annuity
16 shall be increased (1) on each January 1 occurring on or
17 after the commencement of the annuity if the deceased member
18 died while receiving a retirement annuity, or (2) in other
19 cases, on each January 1 occurring on or after the first
20 anniversary of the commencement of the annuity, by an amount
21 equal to 3% of the current amount of the annuity, including
22 any previous increases under this Article. Such increases
23 shall apply without regard to whether the deceased member was
24 in service on or after the effective date of Public Act
25 86-1488, but shall not accrue for any period prior to January
26 1, 1990.
27 (Source: P.A. 86-273; 86-1488; 87-794.)
28 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
29 Sec. 14-120. Survivors annuities - Conditions for
30 payments. A survivors annuity is established for all members
31 of the System. Upon the death of any male person who was a
32 member on July 19, 1961, however, his widow may have the
33 option of receiving the widow's annuity provided in this
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1 Article, in lieu of the survivors annuity.
2 (a) A survivors annuity beneficiary, as herein defined,
3 is eligible for a survivors annuity if the deceased member
4 had completed at least 1 1/2 years of contributing creditable
5 service if death occurred:
6 (1) while in service;
7 (2) while on an approved or authorized leave of
8 absence from service, not exceeding one year
9 continuously; or
10 (3) while in receipt of a non-occupational
11 disability or an occupational disability benefit.
12 (b) If death of the member occurs after withdrawal, the
13 survivors annuity beneficiary is eligible for such annuity
14 only if the member had fulfilled at the date of withdrawal
15 the prescribed service conditions for establishing a right in
16 a retirement annuity.
17 (c) Payment of the survivors annuity shall begin
18 immediately if the beneficiary is 50 years or over, or upon
19 attainment of age 50 if the beneficiary is under that age at
20 the date of the member's death. In the case of survivors of a
21 member whose death occurred between November 1, 1970 and July
22 15, 1971, the payment of the survivors annuity shall begin
23 upon October 1, 1977, if the beneficiary is then 50 years of
24 age or older, or upon the attainment of age 50 if the
25 beneficiary is under that age on October 1, 1977.
26 If an eligible child or children, under the care of the
27 spouse also survive the member, the survivors annuity shall
28 begin immediately without regard to whether the beneficiary
29 has attained age 50.
30 Benefits under this Section shall accrue and be payable
31 for whole calendar months, beginning on the first day of the
32 month after the initiating event occurs and ending on the
33 last day of the month in which the terminating event occurs.
34 (d) A survivor annuity beneficiary means:
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1 (1) A spouse of a member or annuitant if the
2 current marriage with member was in effect at least one
3 year at the date of the member's death or at least one
4 year at the date of his or her withdrawal, whichever
5 first occurs.;
6 (2) An unmarried child under age 18 (under age 22
7 if a full-time student) of the member or annuitant; an
8 unmarried stepchild under age 18 (under age 22 if a
9 full-time student) who has been such for at least one
10 year at the date of the member's death or at least one
11 year at the date of withdrawal, whichever first occurs;
12 an unmarried adopted child under age 18 (under age 22 if
13 a full-time student) if the adoption proceedings were
14 initiated at least one year prior to the death or
15 withdrawal of the member or annuitant, whichever first
16 occurs; and an unmarried child over age 18 if he or she
17 is dependent by reason of a physical or mental
18 disability, so long as the such physical or mental
19 disability continues. For purposes of this subsection
20 sub-section, disability means inability to engage in any
21 substantial gainful activity by reason of any medically
22 determinable physical or mental impairment which can be
23 expected to result in death or which has lasted or can be
24 expected to last for a continuous period of not less than
25 12 months.;
26 (3) A dependent parent of the member or annuitant;
27 a dependent step-parent by a marriage contracted before
28 the member or annuitant attained age 18; or a dependent
29 adopting parent by whom the member or annuitant was
30 adopted before he or she attained age 18.
31 (e) Remarriage before age 55 or death of a spouse;
32 marriage or death of a child; or remarriage before age 55 or
33 death of a parent terminates the survivors annuity payable on
34 account of such beneficiary. Remarriage of a prospective
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1 beneficiary prior to the attainment of age 50 disqualifies
2 the beneficiary for the annuity expectancy hereunder.
3 Termination due to a marriage or remarriage shall be
4 permanent regardless of any future changes in marital status.
5 Any person whose survivors annuity was terminated during
6 1978 or 1979 due to remarriage at age 55 or over shall be
7 eligible to apply, not later than July 1, 1990, for a
8 resumption of that annuity, to begin on July 1, 1990.
9 (f) The term "dependent" relating to a survivors annuity
10 means a beneficiary of a survivors annuity who was receiving
11 from the member at the date of the member's death at least
12 1/2 of the support for maintenance including board, lodging,
13 medical care and like living costs.
14 (g) If there is no eligible spouse surviving the member,
15 or if a survivors annuity beneficiary includes a spouse who
16 dies or remarries, the annuity is payable to an unmarried
17 child or children. If at the date of death of the member
18 there is no spouse or unmarried child, payments shall be made
19 to a dependent parent or parents. If no eligible survivors
20 annuity beneficiary survives the member, the non-occupational
21 death benefit is payable in the manner provided in this
22 Article.
23 (h) Survivor benefits do not affect any reversionary
24 annuity.
25 (i) If a survivors annuity beneficiary becomes entitled
26 to a widow's annuity or one or more survivors annuities or
27 both such annuities, the beneficiary shall elect to receive
28 only one of such annuities.
29 (j) Contributing creditable service under the State
30 Universities Retirement System and the Teachers Retirement
31 System of the State of Illinois shall be considered in
32 determining whether the member has met the contributing
33 service requirements of this Section.
34 (k) In lieu of the Survivor's Annuity described in this
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1 Section, the spouse of the member has the option to select
2 the Nonoccupational Death Benefit described in this Article,
3 provided the spouse is the sole survivor and the sole
4 nominated beneficiary of the member.
5 (l) The changes made to this Section and Sections
6 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
7 relating to benefits for certain unmarried children who are
8 full-time students under age 22, apply without regard to
9 whether the deceased member was in service on or after the
10 effective date of this amendatory Act of 1997. These changes
11 do not authorize the repayment of a refund or a re-election
12 of benefits, and any benefit or increase in benefits
13 resulting from these changes is not payable retroactively for
14 any period before the effective date of this amendatory Act
15 of 1997.
16 (Source: P.A. 86-273.)
17 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
18 Sec. 14-128. Occupational death benefit. An
19 occupational death benefit is provided for a member of the
20 System whose death, prior to retirement, is the proximate
21 result of bodily injuries sustained or a hazard undergone
22 while in the performance and within the scope of the member's
23 duties.
24 (a) Conditions for payment.
25 Exclusive of the lump sum payment provided for herein,
26 all annuities under this Section shall accrue and be payable
27 for complete calendar months, beginning on the first day of
28 the month next following the month in which the initiating
29 event occurs and ending on the last day of the month in which
30 the terminating event occurs.
31 The following named survivors of the member may be
32 eligible for an annuity under this Section:
33 (i) The member's spouse.
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1 (ii) An unmarried child of the member under age 18
2 (under age 22 if a full-time student); an unmarried
3 stepchild under age 18 (under age 22 if a full-time
4 student) who has been such for at least one year at the
5 date of the member's death; an unmarried adopted child
6 under age 18 (under age 22 if a full-time student) if the
7 adoption proceedings were initiated at least one year
8 prior to the death of the member; and an unmarried child
9 over age 18 who is dependent by reason of a physical or
10 mental disability, for so long as such physical or mental
11 disability continues. For the purposes of this Section
12 disability means inability to engage in any substantial
13 gainful activity by reason of any medically determinable
14 physical or mental impairment which can be expected to
15 result in death or which has lasted or can be expected to
16 last for a continuous period of not less than 12 months.
17 (iii) If no spouse or eligible children survive: a
18 dependent parent of the member; a dependent step-parent
19 by a marriage contracted before the member attained age
20 18; or a dependent adopting parent by whom the member was
21 adopted before he or she attained age 18.
22 The term "dependent" relating to an Occupational Death
23 Benefit means a survivor of the member who was receiving from
24 the member at the date of the member's death at least 1/2 of
25 the support for maintenance including board, lodging, medical
26 care and like living costs.
27 Payment of the annuity shall continue until the
28 occurrence of the following:
29 (1) remarriage before age 55 or death, in the case
30 of a surviving spouse;
31 (2) attainment of age 18 or termination of
32 disability, death, or marriage, in the case of an
33 eligible child;
34 (3) remarriage before age 55 or death, in the case
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1 of a dependent parent.
2 If none of the aforementioned beneficiaries is living at
3 the date of death of the member, no occupational death
4 benefit shall be payable, but the nonoccupational death
5 benefit shall be payable as provided in this Article.
6 (b) Amount of benefit.
7 The member's accumulated contributions plus credited
8 interest shall be payable in a lump sum to such person as the
9 member has nominated by written direction, duly acknowledged
10 and filed with the Board, or if no such nomination to the
11 estate of the member. When an annuitant is re-employed by a
12 Department, the accumulated contributions plus credited
13 interest payable on the member's account shall, if the member
14 has not previously elected a reversionary annuity, consist of
15 the excess, if any, of the member's total accumulated
16 contributions plus credited interest for all creditable
17 service over the total amount of all retirement annuity
18 payments received by the member prior to death.
19 In addition to the foregoing payment, an annuity is
20 provided for eligible survivors as follows:
21 (1) If the survivor is a spouse only, the annuity
22 shall be 50% of the member's final average compensation.
23 (2) If the spouse has in her care an eligible child
24 or children, the annuity shall be increased by an amount
25 equal to 15% of the final average compensation on account
26 of each such child, subject to a limitation on the
27 combined annuities to a surviving spouse and children of
28 75% of final average compensation.
29 (3) If there is no surviving spouse, or if the
30 surviving spouse dies or remarries while a child remains
31 eligible, then each such child shall be entitled to an
32 annuity of 15% of the deceased member's final average
33 compensation, subject to a limitation of 50% of final
34 average compensation to all such children.
-83- LRB9000602EGfgam30
1 (4) If there is no surviving spouse or eligible
2 children, then an annuity shall be payable to the
3 member's dependent parents, equal to 25% of final average
4 compensation to each such beneficiary.
5 If any annuity payable under this Section is less than
6 the corresponding survivors annuity, the beneficiary or
7 beneficiaries of the annuity under this Section may elect to
8 receive the survivors annuity and the Nonoccupational Death
9 Benefit provided for in this Article in lieu of the annuity
10 provided under this Section.
11 (c) Occupational death claims pending adjudication by
12 the Industrial Commission or a ruling by the agency
13 responsible for determining the liability of the State under
14 the "Workers' Compensation Act" or "Workers' Occupational
15 Diseases Act" shall be payable under the Survivor's Annuity
16 Section of this Article until a ruling or adjudication occurs
17 if the beneficiary or beneficiaries: (1) meet all conditions
18 for payment as prescribed in this Article; and (2) execute an
19 assignment of benefits payable as a result of adjudication by
20 the Industrial Commission or a ruling by the agency
21 responsible for determining the liability of the State under
22 such Acts. The assignment shall be made to the System and
23 shall be for an amount equal to the excess of benefits paid
24 under the Survivor's Annuity Section of this Article over
25 benefits payable as a result of adjudication of the Workers'
26 Compensation claim computed from the date of death of the
27 member.
28 (d) Every occupational death annuity payable under this
29 Section shall be increased on each January 1 occurring on or
30 after (i) January 1, 1990, or (ii) the first anniversary of
31 the commencement of the annuity, whichever occurs later, by
32 an amount equal to 3% of the current amount of the annuity,
33 including any previous increases under this Article, without
34 regard to whether the deceased member was in service on the
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1 effective date of this amendatory Act of 1991.
2 (Source: P.A. 86-273; 86-1488.)
3 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
4 Sec. 14-130. Refunds; rules.
5 (a) Upon withdrawal a member is entitled to receive,
6 upon written request, a refund of the member's contributions,
7 including credits granted while in receipt of disability
8 benefits, without credited interest. The board, in its
9 discretion may withhold payment of the refund of a member's
10 contributions for a period not to exceed 1 year after the
11 member has ceased to be an employee.
12 For purposes of this Section, a member will be considered
13 to have withdrawn from service if a change in, or transfer
14 of, his position results in his becoming ineligible for
15 continued membership in this System and eligible for
16 membership in another public retirement system under this
17 Act.
18 (b) A member receiving a refund forfeits and
19 relinquishes all accrued rights in the System, including all
20 accumulated creditable service. If the person again becomes
21 a member of the System and establishes at least 2 years of
22 creditable service, the member may repay the moneys
23 previously refunded. However, a former member may restore
24 credits previously forfeited by acceptance of a refund
25 without returning to service by applying in writing and
26 repaying to the System, by April 1, 1993, the amount of the
27 refund plus regular interest calculated from the date of
28 refund to the date of repayment.
29 The repayment of refunds issued prior to January 1, 1984
30 shall consist of the amount refunded plus 5% interest per
31 annum compounded annually for the period from the date of the
32 refund to the end of the month in which repayment is made.
33 The repayment of refunds issued after January 1, 1984 shall
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1 consist of the amount refunded plus regular interest for the
2 period from the date of refund to the end of the month in
3 which repayment is made. However, in the case of a refund
4 that is repaid in a lump sum between January 1, 1991 and July
5 1, 1991, repayment shall consist of the amount refunded plus
6 interest at the rate of 2.5% per annum compounded annually
7 from the date of the refund to the end of the month in which
8 repayment is made.
9 Upon repayment, the member shall receive credit for the
10 service, member contributions and regular interest that was
11 forfeited by acceptance of the refund as well as regular
12 interest for the period of non-membership. Such repayment
13 shall be made in full before retirement either in a lump sum
14 or in installment payments in accordance with such rules as
15 may be adopted by the board.
16 (b-5) The Board may adopt rules governing the repayment
17 of refunds and establishment of credits in cases involving
18 awards of back pay or reinstatement. The rules may authorize
19 repayment of a refund in installment payments and may waive
20 the payment of interest on refund amounts repaid in full
21 within a specified period.
22 (c) A member who is unmarried on the date of retirement
23 or who does not have an eligible survivors annuity
24 beneficiary at that date is entitled to a refund of
25 contributions for widow's annuity or survivors annuity
26 purposes, or both, as the case may be, without interest.
27 (d) Any member who has service credit in any position
28 for which an alternative retirement annuity is provided and
29 in relation to which an increase in the rate of employee
30 contribution is required, shall be entitled to a refund,
31 without interest, of that part of the member's employee
32 contribution which results from that increase in the employee
33 rate if the member does not qualify for that alternative
34 retirement annuity at the time of retirement.
-86- LRB9000602EGfgam30
1 (Source: P.A. 86-1488; 87-1265.)
2 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
3 (Text of Section before amendment by P.A. 89-507)
4 Sec. 14-133. Contributions on behalf of members.
5 (a) Each participating employee shall make contributions
6 to the System, based on the employee's compensation, as
7 follows:
8 (1) Covered employees, except as indicated below,
9 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
10 for a widow or survivors annuity;
11 (2) Noncovered employees, except as indicated
12 below, 7% for retirement annuity and 1% for a widow or
13 survivors annuity;
14 (3) Noncovered employees serving in a position in
15 which "eligible creditable service" as defined in Section
16 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
17 and 1% for a widow or survivors annuity;
18 (4) Covered employees serving in a position in
19 which "eligible creditable service" as defined in Section
20 14-110 may be earned, 5% for retirement annuity and 0.5%
21 for a widow or survivors annuity;
22 (5) Each full-time security employee of the
23 Department of Corrections or of the Department of Mental
24 Health and Developmental Disabilities who is a covered
25 employee, 5% for retirement annuity and 0.5% 1/2 of 1%
26 for a widow or survivors annuity;
27 (6) Each full-time security employee of the
28 Department of Corrections or of the Department of Mental
29 Health and Developmental Disabilities who is not a
30 covered employee, 8.5% 8 1/2% for retirement annuity and
31 1% for a widow or survivors annuity.
32 (b) Contributions shall be in the form of a deduction
33 from compensation and shall be made notwithstanding that the
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1 compensation paid in cash to the employee shall be reduced
2 thereby below the minimum prescribed by law or regulation.
3 Each member is deemed to consent and agree to the deductions
4 from compensation provided for in this Article, and shall
5 receipt in full for salary or compensation.
6 (Source: P.A. 86-273.)
7 (Text of Section after amendment by P.A. 89-507)
8 Sec. 14-133. Contributions on behalf of members.
9 (a) Each participating employee shall make contributions
10 to the System, based on the employee's compensation, as
11 follows:
12 (1) Covered employees, except as indicated below,
13 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
14 for a widow or survivors annuity;
15 (2) Noncovered employees, except as indicated
16 below, 7% for retirement annuity and 1% for a widow or
17 survivors annuity;
18 (3) Noncovered employees serving in a position in
19 which "eligible creditable service" as defined in Section
20 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
21 and 1% for a widow or survivors annuity;
22 (4) Covered employees serving in a position in
23 which "eligible creditable service" as defined in Section
24 14-110 may be earned, 5% for retirement annuity and 0.5%
25 for a widow or survivors annuity;
26 (5) Each full-time security employee of the
27 Department of Corrections or of the Department of Human
28 Services who is a covered employee, 5% for retirement
29 annuity and 0.5% 1/2 of 1% for a widow or survivors
30 annuity;
31 (6) Each full-time security employee of the
32 Department of Corrections or of the Department of Human
33 Services who is not a covered employee, 8.5% 8 1/2% for
34 retirement annuity and 1% for a widow or survivors
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1 annuity.
2 (b) Contributions shall be in the form of a deduction
3 from compensation and shall be made notwithstanding that the
4 compensation paid in cash to the employee shall be reduced
5 thereby below the minimum prescribed by law or regulation.
6 Each member is deemed to consent and agree to the deductions
7 from compensation provided for in this Article, and shall
8 receipt in full for salary or compensation.
9 (Source: P.A. 89-507, eff. 7-1-97.)
10 (40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
11 Sec. 14-133.1. Pickup of contributions.
12 (a) Each department shall pick up the employee
13 contributions required by Section 14-133 for all compensation
14 earned after December 31, 1981, and the contributions so
15 picked up shall be treated as employer contributions in
16 determining tax treatment under the United States Internal
17 Revenue Code; however, each department shall continue to
18 withhold federal and State income taxes based upon these
19 contributions until the Internal Revenue Service or the
20 federal courts rule that pursuant to Section 414(h) of the
21 United States Internal Revenue Code, these contributions
22 shall not be included as gross income of the employee until
23 such time as they are distributed or made available.
24 The department shall pay these employee contributions
25 from the same fund which is used in paying earnings to the
26 employee. The department may pick up these contributions by
27 a reduction in the cash salary of the employee or by an
28 offset against a future salary increase or by a combination
29 of a reduction in salary and offset against a future salary
30 increase. If employee contributions are picked up they shall
31 be treated for all purposes of this Article 14 in the same
32 manner and to the same extent as employee contributions made
33 prior to the date picked up.
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1 (b) Subject to the requirements of federal law, an
2 employee of a department may elect to have the department
3 pick up optional contributions that the employee has elected
4 to pay to the System, and the contributions so picked up
5 shall be treated as employer contributions for the purposes
6 of determining federal tax treatment. The department shall
7 pick up the contributions by a reduction in the cash salary
8 of the employee and shall pay the contributions from the same
9 fund that is used to pay earnings to the employee. The
10 election to have optional contributions picked up is
11 irrevocable and the optional contributions may not thereafter
12 be prepaid, by direct payment or otherwise.
13 (Source: P.A. 87-14.)
14 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
15 Sec. 15-107. Employee.
16 (a) "Employee" means any member of the educational,
17 administrative, secretarial, clerical, mechanical, labor or
18 other staff of an employer whose employment is permanent and
19 continuous or who is employed in a position in which services
20 are expected to be rendered on a continuous basis for at
21 least 4 months or one academic term, whichever is less, who
22 (A) receives payment for personal services on a warrant
23 issued pursuant to a payroll voucher certified by an employer
24 and drawn by the State Comptroller upon the State Treasurer
25 or by an employer upon trust, federal or other funds, or (B)
26 is on a leave of absence without pay. Employment which is
27 irregular, intermittent or temporary shall not be considered
28 continuous for purposes of this paragraph.
29 However, a person is not an "employee" if he or she:
30 (1) is a student enrolled in and regularly
31 attending classes in a college or university which is an
32 employer, and is employed on a temporary basis at less
33 than full time;
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1 (2) is currently receiving a retirement annuity or
2 a disability retirement annuity under Section 15-153.2
3 from this System;
4 (3) is on a military leave of absence;
5 (4) is eligible to participate in the Federal Civil
6 Service Retirement System and is currently making
7 contributions to that system based upon earnings paid by
8 an employer;
9 (5) is on leave of absence without pay for more
10 than 60 days immediately following termination of
11 disability benefits under this Article;
12 (6) is hired after June 30, 1979 as a public
13 service employment program participant under the Federal
14 Comprehensive Employment and Training Act and receives
15 earnings in whole or in part from funds provided under
16 that Act;
17 (7) is employed on or after July 1, 1991 to perform
18 services that are excluded by subdivision (a)(7)(f) or
19 (a)(19) of Section 210 of the federal Social Security Act
20 from the definition of employment given in that Section
21 (42 U.S.C. 410); or
22 (8) participates in an optional program for
23 part-time workers under Section 15-158.1.; or
24 (9) participates in an optional program for
25 employees under Section 15-158.2.
26 (b) Any employer may, by filing a written notice with
27 the board, exclude from the definition of "employee" all
28 persons employed pursuant to a federally funded contract
29 entered into after July 1, 1982 with a federal military
30 department in a program providing training in military
31 courses to federal military personnel on a military site
32 owned by the United States Government, if this exclusion is
33 not prohibited by the federally funded contract or federal
34 laws or rules governing the administration of the contract.
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1 (c) Any person appointed by the Governor under the Civil
2 Administrative Code of the State is an employee, if he or she
3 is a participant in this system on the effective date of the
4 appointment.
5 (d) A participant on lay-off status under civil service
6 rules is considered an employee for not more than 120 days
7 from the date of the lay-off.
8 (e) A participant is considered an employee during (1)
9 the first 60 days of disability leave, (2) the period, not to
10 exceed one year, in which his or her eligibility for
11 disability benefits is being considered by the board or
12 reviewed by the courts, and (3) the period he or she receives
13 disability benefits under the provisions of Section 15-152,
14 workers' compensation or occupational disease benefits, or
15 disability income under an insurance contract financed wholly
16 or partially by the employer.
17 (f) Absences without pay, other than formal leaves of
18 absence, of less than 30 calendar days, are not considered as
19 an interruption of a person's status as an employee. If such
20 absences during any period of 12 months exceed 30 work days,
21 the employee status of the person is considered as
22 interrupted as of the 31st work day.
23 (g) A staff member whose employment contract requires
24 services during an academic term is to be considered an
25 employee during the summer and other vacation periods, unless
26 he or she declines an employment contract for the succeeding
27 academic term or his or her employment status is otherwise
28 terminated, and he or she receives no earnings during these
29 periods.
30 (Source: P.A. 89-430, eff. 12-15-95.)
31 (40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
32 Sec. 15-131. Survivors insurance beneficiary. "Survivors
33 insurance beneficiary": The spouse, dependent unmarried child
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1 under age 18 (under age 22 if a full-time student), unmarried
2 child over age 18 who is dependent by reason of a physical or
3 mental disability which began prior to attainment of that
4 age, or dependent parent, who could qualify for survivors
5 insurance payments under this Article.
6 (Source: P.A. 86-273; 86-1488.)
7 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
8 Sec. 15-134. Participant.
9 (a) Each person shall, as a condition of employment,
10 become a participant and be subject to this Article on the
11 date that he or she becomes an employee, makes an election to
12 participate in, or otherwise becomes a participant in one of
13 the retirement programs offered under this Article, whichever
14 date is later.
15 An employee who becomes a participant shall continue to
16 be a participant until he or she becomes an annuitant, dies
17 or accepts a refund of contributions, except that a person
18 shall not be deemed a participant while participating in an
19 optional program for part-time workers established under
20 Section 15-158.1 or participating in an optional program for
21 employees established under Section 15-158.2.
22 (b) A person employed concurrently by 2 or more
23 employers is eligible to participate in the system on
24 compensation received from all employers; however, his or her
25 combined basic compensation and combined earnings shall not
26 exceed the basic compensation and earnings which would have
27 been payable for full-time employment by the employer under
28 which the employee's basic compensation is the highest.
29 However, effective for all employment on or after July 1,
30 1991, where a person is employed to render service to one
31 employer during an academic or summer term and is employed by
32 another employer to render service to it during the
33 succeeding, nonoverlapping academic or summer term, then
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1 exclusively for the purposes of this Section, the person
2 shall be considered to be successively employed by more than
3 one employer, rather than concurrently employed by 2 or more
4 employers.
5 (Source: P.A. 89-430, eff. 12-15-95.)
6 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
7 Sec. 15-136. Retirement annuities - Amount.
8 (a) The amount of the retirement annuity shall be
9 determined by whichever of the following rules is applicable
10 and provides the largest annuity:
11 Rule 1: The retirement annuity shall be 1.67% of final
12 rate of earnings for each of the first 10 years of service,
13 1.90% for each of the next 10 years of service, 2.10% for
14 each year of service in excess of 20 but not exceeding 30,
15 and 2.30% for each year in excess of 30, except that the
16 annuity for those persons having made an election under
17 Section 15-154(a-1) shall be calculated and payable under the
18 portable retirement benefit program pursuant to the
19 provisions of Section 15-136.4.
20 Rule 2: The retirement annuity shall be the sum of the
21 following, determined from amounts credited to the
22 participant in accordance with the actuarial tables and the
23 prescribed rate of interest in effect at the time the
24 retirement annuity begins:
25 (i) The normal annuity which can be provided on an
26 actuarially actuarial equivalent basis, by the accumulated
27 normal contributions as of the date the annuity begins; and
28 (ii) an annuity from employer contributions of an amount
29 which can be provided on an actuarially equivalent basis from
30 the accumulated normal contributions made by the participant
31 under Section 15-113.6 and Section 15-113.7 plus 1.4 times
32 all other accumulated normal contributions made by the
33 participant, except that the annuity for those persons having
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1 made an election under Section 15-154(a-1) shall be
2 calculated and payable under the portable retirement benefit
3 program pursuant to the provisions of Section 15-136.4.
4 Rule 3: The retirement annuity of a participant who is
5 employed at least one-half time during the period on which
6 his or her final rate of earnings is based, shall be equal to
7 the participant's years of service not to exceed 30,
8 multiplied by (1) $96 if the participant's final rate of
9 earnings is less than $3,500, (2) $108 if the final rate of
10 earnings is at least $3,500 but less than $4,500, (3) $120 if
11 the final rate of earnings is at least $4,500 but less than
12 $5,500, (4) $132 if the final rate of earnings is at least
13 $5,500 but less than $6,500, (5) $144 if the final rate of
14 earnings is at least $6,500 but less than $7,500, (6) $156 if
15 the final rate of earnings is at least $7,500 but less than
16 $8,500, (7) $168 if the final rate of earnings is at least
17 $8,500 but less than $9,500, and (8) $180 if the final rate
18 of earnings is $9,500 or more, except that the annuity for
19 those persons having made an election under Section
20 15-154(a-1) shall be calculated and payable under the
21 portable retirement benefit program pursuant to the
22 provisions of Section 15-136.4.
23 Rule 4: A participant who is at least age 50 and has 25
24 or more years of service as a police officer or firefighter,
25 and a participant who is age 55 or over and has at least 20
26 but less than 25 years of service as a police officer or
27 firefighter, shall be entitled to a retirement annuity of 2
28 1/4% of the final rate of earnings for each of the first 10
29 years of service as a police officer or firefighter, 2 1/2%
30 for each of the next 10 years of service as a police officer
31 or firefighter, and 2 3/4% for each year of service as a
32 police officer or firefighter in excess of 20, except that
33 the annuity for those persons having made an election under
34 Section 15-154(a-1) shall be calculated and payable under the
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1 portable retirement benefit program pursuant to the
2 provisions of Section 15-136.4. The retirement annuity for
3 all other service shall be computed under Rule 1, payable
4 under the portable retirement benefit program pursuant to the
5 provisions of Section 15-136.4, if applicable.
6 (b) The retirement annuity provided under Rules 1 and 3
7 above shall be reduced by 1/2 of 1% for each month the
8 participant is under age 60 at the time of retirement.
9 However, this reduction shall not apply in the following
10 cases:
11 (1) For a disabled participant whose disability
12 benefits have been discontinued because he or she has
13 exhausted eligibility for disability benefits under
14 clause (6) (5) of Section 15-152;
15 (2) For a participant who has at least 35 years of
16 service; or
17 (3) For that portion of a retirement annuity which
18 has been provided on account of service of the
19 participant during periods when he or she performed the
20 duties of a police officer or firefighter, if these
21 duties were performed for at least 5 years immediately
22 preceding the date the retirement annuity is to begin.
23 (c) The maximum retirement annuity provided under Rules
24 1, 2, and 4 shall be the lesser of (1) the annual limit of
25 benefits as specified in Section 415 of the Internal Revenue
26 Code of 1986, as such Section may be amended from time to
27 time and as such benefit limits shall be adjusted by the
28 Commissioner of Internal Revenue, and (2) 75% of final rate
29 of earnings; however, this limitation of 75% of final rate of
30 earnings shall not apply to a person who is a participant or
31 annuitant on September 15, 1977 if it results in a retirement
32 annuity less than that which is payable to the annuitant or
33 which would have been payable to the participant under the
34 provisions of this Article in effect on June 30, 1977.
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1 (d) An annuitant whose status as an employee terminates
2 after August 14, 1969 shall receive automatic increases in
3 his or her retirement annuity as follows:
4 Effective January 1 immediately following the date the
5 retirement annuity begins, the annuitant shall receive an
6 increase in his or her monthly retirement annuity of 0.125%
7 of the monthly retirement annuity provided under Rule 1, Rule
8 2, Rule 3, or Rule 4, contained in this Section, multiplied
9 by the number of full months which elapsed from the date the
10 retirement annuity payments began to January 1, 1972, plus
11 0.1667% of such annuity, multiplied by the number of full
12 months which elapsed from January 1, 1972, or the date the
13 retirement annuity payments began, whichever is later, to
14 January 1, 1978, plus 0.25% of such annuity multiplied by the
15 number of full months which elapsed from January 1, 1978, or
16 the date the retirement annuity payments began, whichever is
17 later, to the effective date of the increase.
18 The annuitant shall receive an increase in his or her
19 monthly retirement annuity on each January 1 thereafter
20 during the annuitant's life of 3% of the monthly annuity
21 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
22 this Section. The change made under this subsection by P.A.
23 81-970 is effective January 1, 1980 and applies to each
24 annuitant whose status as an employee terminates before or
25 after that date.
26 Beginning January 1, 1990, all automatic annual increases
27 payable under this Section shall be calculated as a
28 percentage of the total annuity payable at the time of the
29 increase, including all increases previously granted under
30 this Article. The change made in this subsection by P.A.
31 85-1008 is effective January 26, 1988, and is applicable
32 without regard to whether status as an employee terminated
33 before that date.
34 (e) If, on January 1, 1987, or the date the retirement
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1 annuity payment period begins, whichever is later, the sum of
2 the retirement annuity provided under Rule 1 or Rule 2 of
3 this Section and the automatic annual increases provided
4 under the preceding subsection or Section 15-136.1, amounts
5 to less than the retirement annuity which would be provided
6 by Rule 3, the retirement annuity shall be increased as of
7 January 1, 1987, or the date the retirement annuity payment
8 period begins, whichever is later, to the amount which would
9 be provided by Rule 3 of this Section. Such increased amount
10 shall be considered as the retirement annuity in determining
11 benefits provided under other Sections of this Article. This
12 paragraph applies without regard to whether status as an
13 employee terminated before the effective date of this
14 amendatory Act of 1987, provided that the annuitant was
15 employed at least one-half time during the period on which
16 the final rate of earnings was based.
17 (f) A participant is entitled to such additional annuity
18 as may be provided on an actuarially actuarial equivalent
19 basis, by any accumulated additional contributions to his or
20 her credit. However, the additional contributions made by
21 the participant toward the automatic increases in annuity
22 provided under this Section shall not be taken into account
23 in determining the amount of such additional annuity.
24 (g) If, (1) by law, a function of a governmental unit,
25 as defined by Section 20-107 of this Code, is transferred in
26 whole or in part to an employer, and (2) a participant
27 transfers employment from such governmental unit to such
28 employer within 6 months after the transfer of the function,
29 and (3) the sum of (A) the annuity payable to the participant
30 under Rule 1, 2, or 3 of this Section (B) all proportional
31 annuities payable to the participant by all other retirement
32 systems covered by Article 20, and (C) the initial primary
33 insurance amount to which the participant is entitled under
34 the Social Security Act, is less than the retirement annuity
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1 which would have been payable if all of the participant's
2 pension credits validated under Section 20-109 had been
3 validated under this system, a supplemental annuity equal to
4 the difference in such amounts shall be payable to the
5 participant.
6 (h) On January 1, 1981, an annuitant who was receiving a
7 retirement annuity on or before January 1, 1971 shall have
8 his or her retirement annuity then being paid increased $1
9 per month for each year of creditable service. On January 1,
10 1982, an annuitant whose retirement annuity began on or
11 before January 1, 1977, shall have his or her retirement
12 annuity then being paid increased $1 per month for each year
13 of creditable service.
14 (i) On January 1, 1987, any annuitant whose retirement
15 annuity began on or before January 1, 1977, shall have the
16 monthly retirement annuity increased by an amount equal to 8¢
17 per year of creditable service times the number of years that
18 have elapsed since the annuity began.
19 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
20 (40 ILCS 5/15-136.4 new)
21 Sec. 15-136.4. Portable Retirement Benefit Program.
22 (a) For purposes of this Section, "eligible spouse"
23 means the husband or wife of a participant to whom the
24 participant is married on the date the participant's annuity
25 begins. However, if the participant should die prior to the
26 date the annuity would have begun, then "eligible spouse"
27 means the husband or wife, if any, to whom the participant
28 was married throughout the one-year period preceding the date
29 of his or her death.
30 (b) If a participant has an eligible spouse on the date
31 his or her annuity payments commence, the annuity shall be
32 paid in the form of a 50% joint and survivor annuity unless
33 the participant elects otherwise in writing and his or her
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1 eligible spouse consents to that election. Under a 50% joint
2 and survivor annuity, a reduced amount shall be paid to the
3 participant for his or her lifetime and his or her eligible
4 spouse, if surviving at the participant's death, shall be
5 entitled to receive thereafter a lifetime survivorship
6 annuity in a monthly amount equal to 50% of the reduced
7 monthly amount that was payable to the participant. The
8 reduced amount payable to the participant under the 50% joint
9 and survivor annuity shall be determined so that the
10 aggregate of the annuity payments expected to be made to the
11 participant and his or her eligible spouse is the actuarial
12 equivalent of a single-life annuity. The last payment of a
13 50% joint and survivor annuity shall be made as of the first
14 day of the month in which the death of the survivor occurs.
15 (c) Instead of the 50% joint and survivor annuity, a
16 participant may elect in writing, within the 90-day period
17 prior to the date his or her annuity payments commence, and
18 only with the consent of his or her eligible spouse, to
19 receive a monthly amount in the form of a single-life
20 annuity. A participant may also elect instead an optional
21 form of benefit under subsection (k). However, if the
22 participant does elect an optional form of benefit under
23 subsection (k) and if the contingent annuitant under the
24 option is not the participant's eligible spouse, then the
25 optional election shall be canceled and the annuity shall be
26 paid in the form of a 50% joint and survivor annuity unless,
27 within the 90-day period preceding the annuity commencement
28 date, the eligible spouse consents to the optional election.
29 (d) A participant may also revoke any election made
30 under this Section at any time during the 90-day period
31 preceding the date the participant's annuity commences if the
32 purpose of such revocation is to reinstate coverage under the
33 50% joint and survivor annuity.
34 (e) The eligible spouse's consent to any election made
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1 pursuant to this Section that requires the eligible spouse's
2 consent shall be in writing and shall acknowledge the effect
3 of the consent. In addition, the eligible spouse's signature
4 on the written consent must be witnessed by a notary public.
5 The eligible spouse's consent need not be obtained if the
6 system is satisfied that there is no eligible spouse, that
7 the eligible spouse cannot be located, or because of any
8 other relevant circumstances. An eligible spouse's consent
9 under this Section is valid only with respect to the
10 specified alternate contingent annuitant designated by the
11 participant. If the alternate contingent annuitant is
12 subsequently changed, a new consent by the eligible spouse is
13 required. The eligible spouse's consent to an election made
14 by a participant pursuant to this Section, once made, may not
15 be revoked by the eligible spouse.
16 (f) Within a reasonable period of time preceding the
17 date a participant's annuity commences, a participant shall
18 be supplied with a written explanation of (1) the terms and
19 conditions of the 50% joint and survivor annuity, (2) the
20 participant's right, if any, to elect a single-life annuity
21 or an optional form of payment under subsection (k) in lieu
22 of the 50% joint and survivor annuity and subject, in certain
23 cases, to his or her eligible spouse's consent, and (3) the
24 participant's right to reinstate coverage under the 50% joint
25 and survivor annuity prior to his or her annuity commencement
26 date by revoking an election of a single-life annuity or an
27 optional form of benefit under subsection (k).
28 (g) If a participant does not have an eligible spouse
29 on the date his or her annuity payments commence, the
30 participant shall receive a single-life annuity, subject to
31 his or her right, if any, to elect an optional form of
32 benefit. The last payment of the single-life annuity shall be
33 made as of the first day of the month in which the death of
34 the participant occurs.
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1 (h) A participant with a least 5 years of service whose
2 employment has not terminated shall be covered by the 50%
3 joint and survivor annuity provisions so that if he or she
4 dies prior to termination of employment, his or her eligible
5 spouse will be entitled to receive an annuity. The annuity
6 payable under this subsection (h) to the eligible spouse
7 shall be actuarially equivalent to the amount that would be
8 payable as a survivor annuity under subsection (b) if (1) in
9 the case of a participant who dies after the date on which
10 the participant attained the earliest retirement age, the
11 participant had retired with an immediate qualified joint and
12 survivor annuity on the day before the participant's date of
13 death; or (2) in the case of a participant who dies on or
14 before the date on which the participant would have attained
15 the earliest retirement age, the participant had separated
16 from service on the date of death, survived to the earliest
17 retirement age, retired with an immediate qualified joint and
18 survivor annuity at the earliest retirement age, and died on
19 the day after the day on which the participant would have
20 attained the earliest retirement age.
21 The annuity payable to an eligible spouse of a
22 participant shall commence as of the beginning of the month
23 next following the later of the date of death or the date the
24 participant would have met the eligibility requirements for
25 an annuity and shall continue through the beginning of the
26 month in which the death of the eligible spouse occurs.
27 No benefit shall be payable under this subsection (h) for
28 death during employment after the participant has satisfied
29 the requirements for retirement if an option is effective
30 under subsection (k).
31 (i) A participant who (1) has terminated employment with
32 at least 5 years of service, (2) has not begun receiving
33 annuity payments, (3) has not taken a refund under Section
34 15-154(a-2), and (4) has not elected an effective option
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1 under subsection (k), shall be covered by the 50% joint and
2 survivor annuity provisions of subsection (b) until the date
3 his or her annuity payments commence. If the participant
4 dies before the date his or her annuity payments commence,
5 the participant's surviving eligible spouse shall receive an
6 annuity computed in accordance with the applicable provisions
7 of this Section as if the participant's annuity payments had
8 commenced on the first day of the month coincident with or
9 next following the later of his or her date of death or the
10 date the participant would have been eligible for a
11 retirement annuity based on service prior to his or her
12 death. The annuity payable to such an eligible spouse shall
13 commence on the first day of the month coincident with or
14 next following the later of the participant's date of death
15 or the date the participant would have been eligible for a
16 retirement annuity based on service prior to his death and
17 shall continue through the beginning of the month in which
18 the death of the eligible spouse occurs.
19 (j) The provisions of subsection (i) shall not affect
20 the right of a participant to elect a single-life annuity,
21 pursuant to the provisions of subsection (b).
22 (k) By filing a timely election with the system, a
23 participant who will be eligible to receive a retirement
24 annuity under this Section may designate his or her spouse or
25 any person approved by the system as his or her contingent
26 annuitant and elect to receive an annuity payable in
27 accordance with one of the following options, instead of the
28 annuity to which he or she may otherwise become entitled:
29 Option 1: The participant shall receive a reduced
30 annuity payable for life, and payments in the amount of
31 100% of such reduced amount shall, after the
32 participant's death, be continued to the contingent
33 annuitant during the latter's lifetime.
34 Option 2: The participant shall receive a reduced
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1 annuity payable for life, and payments in the amount of
2 75% of such reduced annuity shall, after the
3 participant's death, be continued to the contingent
4 annuitant during the latter's lifetime.
5 Option 3: The participant shall receive a reduced
6 annuity payable for life, and payments in the amount of
7 50% of such reduced annuity shall, after the
8 participant's death, be continued to the contingent
9 annuitant during the latter's lifetime.
10 The aggregate of the annuity payments expected to be paid
11 to a participant and his contingent annuitant under any of
12 the above options shall be the actuarial equivalent of the
13 annuity that the participant is otherwise entitled to receive
14 upon retirement.
15 Under no circumstances may an option be elected, changed,
16 or revoked after the date the participant's annuity
17 commences. An option in favor of a contingent annuitant who
18 is not the participant's eligible spouse may be revoked at
19 any time prior to the date the participant's annuity payments
20 commence. If the contingent annuitant under the elected
21 option is not the participant's eligible spouse, then the
22 election is valid only if the eligible spouse consents to the
23 participant's optional election and to the specific
24 contingent annuitant within the 90-day period preceding the
25 date the participant's annuity commences.
26 An election made pursuant to this subsection (k) shall
27 become inoperative if the participant's employment terminates
28 before he or she is eligible for a retirement annuity, or if
29 the participant or the contingent annuitant dies before the
30 date the participant's annuity payments commence, or if the
31 eligible spouse's consent is required and not given. An
32 effective option under this subsection (k) takes the place of
33 any benefit otherwise payable under this Section, and the
34 form made available by the system for election of the option
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1 shall so specify.
2 (1) Within the appropriate applicable period under
3 Section 417 of the Internal Revenue Code of 1986, as amended
4 from time to time, a participant shall be supplied with a
5 written explanation of (1) the terms and conditions of the
6 preretirement survivor annuity under subsections (h) and (i),
7 (2) the participant's right, if any, to elect a single-life
8 annuity or an optional form of payment under subsection (k)
9 in lieu of the preretirement survivor annuity and subject, in
10 certain cases, to his or her eligible spouse's consent, and
11 (3) the participant's right to reinstate coverage under the
12 preretirement survivor annuity by revoking an election of a
13 single-life annuity or an optional form of benefit under
14 subsection (k).
15 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
16 Sec. 15-141. Death benefits - Death of participant. The
17 beneficiary of a participant is entitled to a death benefit
18 equal to the sum of (1) the employee's accumulated normal and
19 additional contributions on the date of death, (2) the
20 employee's accumulated survivors insurance contributions on
21 the date of death, if a survivors insurance benefit is not
22 payable, (3) an amount equal to the employee's final rate of
23 earnings, but not more than $5,000 if (i) the beneficiary,
24 under rules of the board, was dependent upon the participant,
25 (ii) the participant was a participating employee immediately
26 prior to his or her death, and (iii) a survivors insurance
27 benefit is not payable, and (4) $2,500 if (i) the beneficiary
28 was not dependent upon the participant, (ii) the participant
29 was a participating employee immediately prior to his or her
30 death, and (iii) a survivors insurance benefit is not
31 payable.
32 However, if the participant has elected to participate in
33 the portable retirement benefit program by making the
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1 election specified in Section 15-154(a-1), the death benefit
2 shall be calculated as follows. The death benefit shall be
3 equal to the employee's accumulated normal and additional
4 contributions on the date of death, or if the employee died
5 with 5 or more years of service for employment as defined in
6 Section 15-113.1, his or her beneficiary shall also be
7 entitled to employer contributions in an amount equal to the
8 sum of accumulated normal and additional contributions;
9 except that if a benefit to a surviving spouse is payable
10 under Section 15-136.4, the death benefit payable under this
11 paragraph shall be reduced, but to not less than zero, by the
12 actuarial value of the benefit payable to the surviving
13 spouse.
14 If payments are made under any State or Federal Workers'
15 Compensation or Occupational Diseases Law because of the
16 death of an employee, the portion of the death benefit
17 payable from employer contributions shall be reduced by the
18 total amount of the payments.
19 (Source: P.A. 87-8.)
20 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
21 Sec. 15-142. Death benefits - Death of annuitant. Upon
22 the death of an annuitant receiving a retirement annuity or
23 disability retirement annuity, the annuitant's beneficiary
24 shall, if a survivor's insurance benefit is not payable under
25 Section 15-145 or an annuity is not payable under Section
26 15-136.4, be entitled to a death benefit equal to the greater
27 of the following: (1) the excess, if any, of the sum of the
28 accumulated normal, survivors insurance and additional
29 contributions as of the date of retirement, or the date the
30 disability retirement annuity began, whichever is earlier,
31 over the sum of all annuity payments made prior to the date
32 of death, or (2) $1,000.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
2 Sec. 15-145. Survivors insurance benefits; Conditions
3 and amounts.
4 (a) The survivors insurance benefits provided under this
5 Section shall be payable upon the death of (1) a
6 participating employee with at least 1 1/2 years of service,
7 (2) a participant who terminated employment with at least 10
8 years of service, and (3) an annuitant in receipt of a
9 retirement annuity or disability retirement annuity under
10 this Article.
11 Service under the State Employees' Retirement System of
12 Illinois, the Teachers' Retirement System of the State of
13 Illinois and the Public School Teacher's Pension and
14 Retirement Fund of Chicago shall be considered in determining
15 eligibility for survivors benefits under this Section.
16 If by law, a function of a governmental unit, as defined
17 by Section 20-107, is transferred in whole or in part to an
18 employer, and an employee transfers employment from this
19 governmental unit to such employer within 6 months after the
20 transfer of this function, the service credits in the
21 governmental unit's retirement system which have been
22 validated under Section 20-109 shall be considered in
23 determining eligibility for survivors benefits under this
24 Section.
25 (b) A surviving spouse of a deceased participant, or of
26 a deceased annuitant who had a survivors insurance
27 beneficiary at the time of retirement, shall receive a
28 survivors annuity of 30% of the final rate of earnings.
29 Payments shall begin on the day following the participant's
30 or annuitant's death or the date the surviving spouse attains
31 age 50, whichever is later, and continue until the death of
32 the surviving spouse. The annuity shall be payable to the
33 surviving spouse prior to attainment of age 50 if the
34 surviving spouse has in his or her care a deceased
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1 participant's or annuitant's dependent unmarried child under
2 age 18 (under age 22 if a full-time student) who is eligible
3 for a survivors annuity. Remarriage of a surviving spouse
4 prior to attainment of age 55 shall disqualify him or her for
5 the receipt of a survivors annuity.
6 (c) Each dependent unmarried child under age 18 (under
7 age 22 if a full-time student) of a deceased participant, or
8 of a deceased annuitant who had a survivors insurance
9 beneficiary at the time of his or her retirement, shall
10 receive a survivors annuity equal to the sum of (1) 20% of
11 the final rate of earnings, and (2) 10% of the final rate of
12 earnings divided by the number of children entitled to this
13 benefit. Payments shall begin on the day following the
14 participant's or annuitant's death and continue until the
15 child marries, dies, or attains age 18 (age 22 if a full-time
16 student). If the child is in the care of a surviving spouse
17 who is eligible for survivors insurance benefits, the child's
18 benefit shall be paid to the surviving spouse.
19 Each unmarried child over age 18 of a deceased
20 participant or of a deceased annuitant who had a survivor's
21 insurance beneficiary at the time of his or her retirement,
22 and who was dependent upon the participant or annuitant by
23 reason of a physical or mental disability which began prior
24 to the date the child attained age 18 (age 22 if a full-time
25 student), shall receive a survivor's annuity equal to the sum
26 of (1) 20% of the final rate of earnings, and (2) 10% of the
27 final rate of earnings divided by the number of children
28 entitled to survivors benefits. Payments shall begin on the
29 day following the participant's or annuitant's death and
30 continue until the child marries, dies, or is no longer
31 disabled. If the child is in the care of a surviving spouse
32 who is eligible for survivors insurance benefits, the child's
33 benefit may be paid to the surviving spouse. For the
34 purposes of this Section, disability means inability to
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1 engage in any substantial gainful activity by reason of any
2 medically determinable physical or mental impairment that can
3 be expected to result in death or that has lasted or can be
4 expected to last for a continuous period of at least one
5 year.
6 (d) Each dependent parent of a deceased participant, or
7 of a deceased annuitant who had a survivors insurance
8 beneficiary at the time of his or her retirement, shall
9 receive a survivors annuity equal to the sum of (1) 20% of
10 final rate of earnings, and (2) 10% of final rate of earnings
11 divided by the number of parents who qualify for the benefit.
12 Payments shall begin when the parent reaches age 55 or the
13 day following the participant's or annuitant's death,
14 whichever is later, and continue until the parent dies.
15 Remarriage of a parent prior to attainment of age 55 shall
16 disqualify the parent for the receipt of a survivors annuity.
17 (e) In addition to the survivors annuity provided above,
18 each survivors insurance beneficiary shall, upon death of the
19 participant or annuitant, receive a lump sum payment of
20 $1,000 divided by the number of such beneficiaries.
21 (f) The changes made in this Section by Public Act
22 81-712 pertaining to survivors annuities in cases of
23 remarriage prior to age 55 shall apply to each survivors
24 insurance beneficiary who remarries after June 30, 1979,
25 regardless of the date that the participant or annuitant
26 terminated his employment or died.
27 (g) On January 1, 1981, any person who was receiving a
28 survivors annuity on or before January 1, 1971 shall have the
29 survivors annuity then being paid increased by 1% for each
30 full year which has elapsed from the date the annuity began.
31 On January 1, 1982, any survivor whose annuity began after
32 January 1, 1971, but before January 1, 1981, shall have the
33 survivor's annuity then being paid increased by 1% for each
34 year which has elapsed from the date the survivor's annuity
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1 began. On January 1, 1987, any survivor who began receiving a
2 survivor's annuity on or before January 1, 1977, shall have
3 the monthly survivor's annuity increased by $1 for each full
4 year which has elapsed since the date the survivor's annuity
5 began.
6 (h) If the sum of the lump sum and total monthly
7 survivor benefits payable under this Section upon the death
8 of a participant amounts to less than the sum of the death
9 benefits payable under items (2) and (3) of Section 15-141,
10 the difference shall be paid in a lump sum to the beneficiary
11 of the participant who is living on the date that this
12 additional amount becomes payable.
13 (i) If the sum of the lump sum and total monthly
14 survivor benefits payable under this Section upon the death
15 of an annuitant receiving a retirement annuity or disability
16 retirement annuity amounts to less than the death benefit
17 payable under Section 15-142, the difference shall be paid to
18 the beneficiary of the annuitant who is living on the date
19 that this additional amount becomes payable.
20 (j) Effective on the later of (1) January 1, 1990, or
21 (2) the January 1 on or next after the date on which the
22 survivor annuity begins, if the deceased member died while
23 receiving a retirement annuity, or in all other cases the
24 January 1 nearest the first anniversary of the date the
25 survivor annuity payments begin, every survivors insurance
26 beneficiary shall receive an increase in his or her monthly
27 survivors annuity of 3%. On each January 1 after the initial
28 increase, the monthly survivors annuity shall be increased by
29 3% of the total survivors annuity provided under this
30 Article, including previous increases provided by this
31 subsection. Such increases shall apply to the survivors
32 insurance beneficiaries of each participant and annuitant,
33 whether or not the employment status of the participant or
34 annuitant terminates before the effective date of this
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1 amendatory Act of 1990.
2 (k) If the Internal Revenue Code of 1986, as amended,
3 requires that the survivors benefits be payable at an age
4 earlier than that specified in this Section the benefits
5 shall begin at the earlier age, in which event, the
6 survivor's beneficiary shall be entitled only to that amount
7 which is equal to the actuarial equivalent of the benefits
8 provided by this Section.
9 (l) The changes made to this Section and Section 15-131
10 by this amendatory Act of 1997, relating to benefits for
11 certain unmarried children who are full-time students under
12 age 22, apply without regard to whether the deceased member
13 was in service on or after the effective date of this
14 amendatory Act of 1997. These changes do not authorize the
15 repayment of a refund or a re-election of benefits, and any
16 benefit or increase in benefits resulting from these changes
17 is not payable retroactively for any period before the
18 effective date of this amendatory Act of 1997.
19 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
20 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
21 Sec. 15-146. Survivors insurance benefits - Minimum
22 amounts.
23 (a) The minimum total survivors annuity payable on
24 account of the death of a participant shall be 50% of the
25 retirement annuity which would have been provided under Rule
26 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
27 attainment of the minimum age at which the penalty for early
28 retirement would not be applicable or the date of the
29 participant's death, whichever is later, on the basis of
30 credits earned prior to the time of death.
31 (b) The minimum total survivors annuity payable on
32 account of the death of an annuitant shall be 50% of the
33 retirement annuity which is payable under Section 15-136 at
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1 the time of death or 50% of the disability retirement annuity
2 payable under Section 15-153.2. This minimum survivors
3 annuity shall apply to each participant and annuitant who
4 dies after September 16, 1979, whether or not his or her
5 employee status terminates before or after that date.
6 (c) If an annuitant has elected a reversionary annuity,
7 the retirement annuity referred to in this Section is that
8 which would have been payable had such election not been
9 filed.
10 (d) If a participant has made the election provided for
11 under Section 15-154(a-1), the minimum survivor benefit shall
12 be determined under Section 15-136.4.
13 (Source: P.A. 83-1362; 83-1440.)
14 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
15 Sec. 15-154. Refunds.
16 (a) A participant whose status as an employee is
17 terminated, regardless of cause, or who has been on lay off
18 status for more than 120 days, and who is not on leave of
19 absence, is entitled to a refund of contributions upon
20 application; except that not more than one such refund
21 application may be made during any academic year.
22 Except as set forth in subsections (a-1) and (a-2), the
23 refund shall be the sum of the accumulated normal, additional
24 and survivors insurance contributions, less the amount of
25 interest credited on these contributions each year in excess
26 of 4 1/2% of the amount on which interest was calculated.
27 (a-1) Every person who becomes a participating employee
28 after the date on which his or her employer first offers an
29 optional retirement program under Section 15-158.2 may elect
30 within 60 days of becoming a participant to have any refund
31 calculated pursuant to subsection (a-2) by forgoing all
32 survivors insurance benefits to which the person's survivors
33 would otherwise be entitled under this Article. This
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1 election is irrevocable and may be made by filing an election
2 with the system on such form as the Executive Director shall
3 prescribe.
4 Each person who is a participating employee on the date
5 on which his or her employer first offers an optional
6 retirement program under Section 15-158.2 shall have a
7 one-time option to elect to have his or her refund calculated
8 pursuant to subsection (a-2), by forgoing all survivors
9 insurance benefits to which the person's survivors would
10 otherwise be entitled under this Article. The election will
11 not be effective until one year after the election is filed
12 with the system. This election is irrevocable and may be
13 made by filing an election with the system, on such form as
14 the Executive Director shall prescribe, within one year after
15 the date on which his or her employer first offers an
16 optional retirement program under Section 15-158.2.
17 A person may make the one-time irrevocable election
18 authorized under this Section or the election authorized
19 under Section 15-158.2(g), but may not make both elections.
20 Any person interested in electing the portable retirement
21 benefit program provided under this Section and Section
22 15-136.4 must be given a consultation with the State
23 Universities Retirement System before making that election.
24 (a-2) The refund elected under subsection (a-1) shall be
25 the sum of the participant's accumulated normal and
26 additional contributions, as defined in Sections 15-116 and
27 15-117. If the participant terminates with 5 or more years
28 of service for employment as defined in Section 15-113.1, he
29 or she shall also be entitled to a refund of employer
30 contributions in an amount equal to the sum of the
31 accumulated normal and additional contributions, as defined
32 in Sections 15-116 and 15-117.
33 (b) Upon acceptance of a refund, the participant
34 forfeits all accrued rights and credits in the System, and if
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1 subsequently reemployed, the participant shall be considered
2 a new employee subject to all the qualifying conditions for
3 participation and eligibility for benefits applicable to new
4 employees. If such person again becomes a participating
5 employee and continues as such for 2 years, or is employed by
6 an employer and participates for at least 2 years in the
7 Federal Civil Service Retirement System, all such rights,
8 credits, and previous status as a participant shall be
9 restored upon repayment of the amount of the refund, together
10 with compound interest thereon from the date the refund was
11 received to the date of repayment at the rate of 6% per annum
12 through August 31, 1982, and at the effective rates after
13 that date.
14 (c) If a participant has made survivors insurance
15 contributions, but has no survivors insurance beneficiary
16 upon retirement, he or she shall be entitled to a refund of
17 the accumulated survivors insurance contributions, or to an
18 additional annuity the value of which is equal to the
19 accumulated survivors insurance contributions.
20 (d) A participant, upon application, is entitled to a
21 refund of his or her accumulated additional contributions
22 except those covering the cost of the annual increase in the
23 retirement annuity provided under Section 15-136. Upon the
24 acceptance of such a refund of accumulated additional
25 contributions, the participant forfeits all rights and
26 credits which may have accrued because of such contributions.
27 (e) A participant who terminates his or her employee
28 status and elects to waive service credit under Section
29 15-154.2, is entitled to a refund of the accumulated normal,
30 additional and survivors insurance contributions, if any,
31 which were credited the participant for this service, or to
32 an additional annuity the value of which is equal to the
33 accumulated normal, additional and survivors insurance
34 contributions, if any; except that not more than one such
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1 refund application may be made during any academic year. Upon
2 acceptance of this refund, the participant forfeits all
3 rights and credits accrued because of this service.
4 (f) If a police officer or firefighter receives a
5 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
6 he or she shall be entitled at retirement to a refund of the
7 difference between his or her accumulated normal
8 contributions and the normal contributions which would have
9 accumulated had such person filed a waiver of the retirement
10 formula provided by Rule 4 of Section 15-136.
11 (g) If, at the time of retirement, a participant would
12 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
13 of Section 15-136 that exceeds the maximum specified in
14 clause (1) of subsection (c) of Section 15-136, he or she
15 shall be entitled to a refund of the employee contributions,
16 if any, paid under Section 15-157 after the date upon which
17 continuance of such contributions would have otherwise caused
18 the retirement annuity to exceed this maximum, plus compound
19 interest at the effective rates.
20 (Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
21 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
22 Sec. 15-157. Employee Contributions.
23 (a) Each participating employee shall make contributions
24 towards the retirement annuity of each payment of earnings
25 applicable to employment under this system on and after the
26 date of becoming a participant as follows: Prior to
27 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
28 to August 31, 1955, 5%; from September 1, 1955 to August 31,
29 1969, 6%; from September 1, 1969, 6 1/2%. These
30 contributions are to be considered as normal contributions
31 for purposes of this Article.
32 Each participant who is a police officer or firefighter
33 shall make normal contributions of 8% of each payment of
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1 earnings applicable to employment as a police officer or
2 firefighter under this system on or after September 1, 1981,
3 unless he or she files with the board within 60 days after
4 the effective date of this amendatory Act of 1991 or 60 days
5 after the board receives notice that he or she is employed as
6 a police officer or firefighter, whichever is later, a
7 written notice waiving the retirement formula provided by
8 Rule 4 of Section 15-136. This waiver shall be irrevocable.
9 If a participant had met the conditions set forth in Section
10 15-132.1 prior to the effective date of this amendatory Act
11 of 1991 but failed to make the additional normal
12 contributions required by this paragraph, he or she may elect
13 to pay the additional contributions plus compound interest at
14 the effective rate. If such payment is received by the
15 board, the service shall be considered as police officer
16 service in calculating the retirement annuity under Rule 4 of
17 Section 15-136.
18 (b) Starting September 1, 1969, each participating
19 employee shall make additional contributions of 1/2 of 1% of
20 earnings to finance a portion of the cost of the annual
21 increases in retirement annuity provided under Section
22 15-136.
23 (c) Each participating employee shall make additional
24 survivors insurance contributions of 1% of earnings
25 applicable under this system on and after August 1, 1959.
26 The contribution made under this subsection shall be used to
27 finance survivors insurance benefits, unless the participant
28 has made an election under Section 15-154(a-1), in which case
29 the contribution made under this subsection shall be used to
30 finance the benefits obtained under that election.
31 Contributions in excess of $80 during any fiscal year
32 beginning August 31, 1969 and in excess of $120 during any
33 fiscal year thereafter until September 1, 1971 shall be
34 considered as additional contributions for purposes of this
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1 Article.
2 (d) If the board by board rule so permits and subject to
3 such conditions and limitations as may be specified in its
4 rules, a participant may make other additional contributions
5 of such percentage of earnings or amounts as the participant
6 shall elect in a written notice thereof received by the
7 board.
8 (e) That fraction of a participant's total accumulated
9 normal contributions, the numerator of which is equal to the
10 number of years of service in excess of that which is
11 required to qualify for the maximum retirement annuity, and
12 the denominator of which is equal to the total service of the
13 participant, shall be considered as accumulated additional
14 contributions. The determination of the applicable maximum
15 annuity and the adjustment in contributions required by this
16 provision shall be made as of the date of the participant's
17 retirement.
18 (f) Notwithstanding the foregoing, a participating
19 employee shall not be required to make contributions under
20 this Section after the date upon which continuance of such
21 contributions would otherwise cause his or her retirement
22 annuity to exceed the maximum retirement annuity as specified
23 in clause (1) of subsection (c) of Section 15-136.
24 (g) A participating employee may make contributions for
25 the purchase of service credit under this Article.
26 (Source: P.A. 86-272; 86-1488.)
27 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
28 Sec. 15-157.1. Pickup Pick up of employee contributions.
29 (a) Each employer shall pick up the employee
30 contributions required under subsections (a), (b), and (c) of
31 Section 15-157 for all earnings payments made on and after
32 January 1, 1981, and the contributions so picked up shall be
33 treated as employer contributions in determining tax
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1 treatment under the United States Internal Revenue Code.
2 These contributions shall not be included as gross income of
3 the participant until such time as they are distributed or
4 made available. The employer shall pay these employee
5 contributions from the same source of funds which is used in
6 paying earnings to the employee. The employer may pick up
7 these contributions by a reduction in the cash salary of the
8 participants, or by an offset against a future salary
9 increase, or by a combination of a reduction in salary and
10 offset against a future salary increase.
11 (b) Subject to the requirements of federal law, a
12 participating employee may elect to have the employer pick up
13 optional contributions that the participant has elected to
14 pay to the System under Section 15-157(g), and the
15 contributions so picked up shall be treated as employer
16 contributions for the purposes of determining federal tax
17 treatment under the federal Internal Revenue Code of 1986.
18 These contributions shall not be included as gross income of
19 the participant until such time as they are distributed or
20 made available. The employer shall pick up the contributions
21 by a reduction in the cash salary of the participant and
22 shall pay the contributions from the same source of funds
23 that is used to pay earnings to the participant. The
24 election to have optional contributions picked up is
25 irrevocable.
26 (Source: P.A. 83-1440.)
27 (40 ILCS 5/15-158.2)
28 Sec. 15-158.2. Optional retirement program for
29 educational employees.
30 (a) Purpose. The General Assembly finds that it is
31 important for colleges and universities to be able to attract
32 and retain the most qualified employees and that in order to
33 attract and retain these employees, colleges and universities
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1 should have the flexibility to provide an alternative
2 retirement program for eligible employees persons who elect
3 not to participate in the other retirement programs plan of
4 contributions and benefits otherwise provided under this
5 Article.
6 (b) Definitions. For the purposes of this Section,
7 "eligible employee person" means an employee who is eligible
8 to participate in the State Universities University
9 Retirement System without respect to Section 15-107(a)(9) and
10 who does not have sufficient age and service to qualify for a
11 retirement annuity under Section 15-135. A "currently
12 eligible employee person" is an employee a person who becomes
13 an eligible employee person on the effective date of the
14 optional retirement program established by the employee's
15 person's employer. A "newly eligible employee person" is an
16 employee a person who becomes an eligible employee person
17 after the effective date of the optional retirement program
18 established by the employee's person's employer.
19 (c) Program. Each employer subject to this Article may
20 elect to establish an optional retirement program under this
21 Section for the eligible employees whom persons that it
22 employs. The optional retirement program shall provide
23 retirement benefits for participating employees persons
24 through the purchase of annuity contracts, either fixed or
25 variable or a combination thereof, through the purchase of
26 mutual funds, or through both and shall may also provide for
27 death and disability benefits.
28 The State Universities Retirement System shall be the
29 plan sponsor for the program. Consistent with its fiduciary
30 duty to the participants and beneficiaries of the program,
31 the Board of Trustees of the System may delegate aspects of
32 program administration as it sees fit to The program may
33 provide for administration of the program by companies
34 authorized to do business in this State, to or the employers,
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1 employer or to a combination of both, but shall not require
2 any action by the State Universities Retirement System or its
3 Board of Trustees. Two or more employers may agree to
4 establish a joint program under this Section.
5 The plan program must be qualified under the Internal
6 Revenue Code of 1986.
7 (d) Proposals. The System, in consultation with the
8 employers, An employer under this Section shall solicit
9 proposals to participate in the program from insurance and
10 annuity companies and mutual fund companies authorized to do
11 conduct such business in this State. In reviewing the
12 proposals received and approving and contracting with no
13 fewer than 2 and no more than 7 companies, at least 2 of
14 which must be insurance and annuity companies, the Board of
15 Trustees of the System deciding to implement a program, the
16 employer shall consider, among other things, the following
17 criteria:
18 (1) the nature and extent of the benefits that
19 would be provided to the participants;
20 (2) the reasonableness of the benefits in relation
21 to the premium charged;
22 (3) the suitability of the benefits to the needs
23 and interests of the participating employees persons and
24 the employer;
25 (4) the ability of the company to provide benefits
26 under the contract and the financial stability of the
27 company; and
28 (5) the efficacy of the contract in the recruitment
29 and retention of employees.
30 An employer that elects to offer an optional retirement
31 program under subsection (c) may only select for
32 participation in the program 2 or more of the companies
33 approved by the Board of Trustees of the System. The System,
34 in consultation with the employers, shall periodically review
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1 each approved company; a company may continue to participate
2 in the program only so long as it continues to be an approved
3 company under contract with the Board.
4 (e) System Conflict of Interest. In order to preclude
5 any conflict of interest by the System, only insurance and
6 annuity companies and mutual fund companies that are
7 authorized to do business in this State may be approved, in
8 accordance with the procedures of subsection (d), to
9 participate in this program and offer investment options for
10 program participants.
11 (f) Account Balance Transfers. Employees who are
12 participating in the program must be allowed to transfer
13 their account balances from the investment options offered by
14 one of the companies selected by the employer to the
15 investment options offered by another company so selected,
16 subject to applicable contractual provisions.
17 (g) (e) Participation. Any eligible employee person
18 employed by an employer may elect to participate in the
19 optional retirement program offered by the employer under
20 subsection (c) that employer's optional retirement program.
21 The election must be made in writing and in the manner
22 prescribed by the System employer. A currently eligible
23 employee person must make take this election within one year
24 after the effective date of the employer's optional
25 retirement program. A newly eligible employee person must
26 make take this election within 60 days after becoming an
27 eligible employee person. A person may make the one-time
28 irrevocable election authorized under this Section or the
29 election authorized under Section 15-154(a-1), but may not
30 make both elections. The employer shall not remit
31 contributions on behalf of a newly eligible employee to
32 either the optional retirement program or to the State
33 Universities Retirement System until the 60-day period has
34 run unless an election by the employee has been made earlier.
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1 Any eligible employee person interested in electing the
2 optional retirement program provided under this Section must
3 be given a consultation with the State Universities
4 Retirement System before making that an election.
5 Participation in the optional retirement program shall
6 begin on the first day of the first pay period following the
7 date of election, but no earlier than January 1, 1998 July 1,
8 1996. The employee's person's participation in any other
9 retirement program administered by the System under this
10 Article the System, if any, with respect to the qualifying
11 employment shall terminate on the date that participation in
12 the optional retirement program begins, and the employee
13 person shall thereby be deemed to have elected to receive a
14 refund of contributions as provided in Section 15-154, except
15 that such deemed refund shall include interest at the
16 effective rate for the respective years, and except that any
17 funds which would have been received shall instead be
18 transferred directly to the optional retirement program as a
19 tax free transfer in accordance with Internal Revenue Service
20 guidelines.
21 Notwithstanding any other provision of this Code, an
22 employee a person may not purchase or receive service or
23 service credit applicable to any other retirement program
24 administered by the System under this Article in this System
25 for any period during which the employee was a participant
26 person was not a participant in the System due to an election
27 to participate in the an optional retirement program
28 established under this Section.
29 An employee A person who has elected to participate in
30 the an optional retirement program under this Section must
31 continue participation while employed in an eligible
32 position, and may not participate in any other retirement
33 program administered by the System under this Article return
34 to participation in this System while employed by that
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1 employer, unless the optional retirement program is
2 terminated in accordance with subsection (i) (g).
3 Participation in the optional retirement program under
4 this Section shall constitute membership in the State
5 Universities Retirement System, although a participant under
6 this Section shall not be entitled to receive any benefits
7 under any other provisions of Article 15 or of Article 20.
8 An employee who receives a disability benefit or a retirement
9 benefit under this Section or an employee who receives a lump
10 sum distribution from a mutual fund company under this
11 Section and uses the lump sum to purchase an annuity shall be
12 considered an employee or an annuitant under Article 15 for
13 purposes of the State Employees Group Insurance Act of 1971.
14 Participation in the optional retirement program under this
15 Section creates a contractual relationship with respect to
16 the investment of the employee's account balance between the
17 employee and the company providing the investment options for
18 the employee's account balance. Participation does not
19 create a contractual relationship between the employee and
20 the System or between the employee and his or her employer.
21 Participation in an optional retirement program
22 established under this Section does not constitute membership
23 or participation in the State Universities Retirement System
24 or any other pension fund or retirement system of the State.
25 Participation in an optional retirement program established
26 under this Section creates a contractual relationship only
27 between the person and the company providing the optional
28 retirement program, and not between the person and the System
29 or the person's employer.
30 (h) (f) Contributions. The contribution rate for
31 employees persons participating in the an optional retirement
32 program under this Section shall be equal to the employee
33 contribution rate for other participants in the System. This
34 required contribution may be made as an "employer pick-up"
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1 under Section 414(h) of the Internal Revenue Code of 1986 or
2 any successor Section. Any employee person participating in
3 the System or who elects to participate in the optional
4 retirement program shall continue to have the employer
5 "pick-up" the contribution. However, amounts picked up after
6 the election of the optional retirement program shall be
7 remitted to the optional retirement plan. In no event shall
8 an employee have an option of receiving these amounts in
9 cash. The program shall provide for employer contributions
10 at a rate of no more than 7.6% of the participating
11 employee's person's salary. The An optional retirement
12 program shall be funded by contributions from employees
13 persons participating in the program and employer
14 contributions as required by the plan. The plan shall be
15 funded in a manner consistent with the requirements of the
16 Internal Revenue Code Section 412, and regulations
17 promulgated thereunder, and Proposed Regulation 412(b)-1(a)
18 as that Section applies those Sections apply to money
19 purchase plans.
20 The State of Illinois shall make contributions by
21 appropriations to the System of the employer contributions
22 required for employees who participate in the optional
23 retirement program under this Section. The amount required
24 shall be certified by the Board of Trustees of the System and
25 paid by the State in accordance with Section 15-165. The
26 System shall not be obligated to remit the required employer
27 contributions to any insurance and annuity and mutual fund
28 companies participating in the optional retirement program
29 under subsection (d) until it has received the required
30 employer contributions from the State. In the event of a
31 deficiency in the amount of State contributions, the System
32 shall implement those procedures described in subsection (c)
33 of Section 15-165 to obtain the required funding from the
34 General Revenue Fund.
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1 The contributions and interest thereon, and any benefits
2 based upon them, shall be treated as provided in the funding
3 vehicles for this plan. An amount of up to 1% of each
4 participating employee's participant's salary shall may be
5 taken from the employer contribution to the optional
6 retirement program and shall may be contributed, on the
7 employee's participant's behalf, to a plan which the System
8 offers employer sets up to provide for life or disability
9 benefits.
10 (i) (g) Termination. An optional retirement program
11 authorized established under this Section may be terminated
12 by the employer, subject to the terms of any relevant
13 contracts, and the employer shall have no obligation to
14 reestablish an optional retirement renew any contract or
15 program established under this Section. This Section does
16 not create a right to continued continue participation in any
17 optional retirement program set up by an employer established
18 under this Section. If an optional retirement program is
19 terminated, the participants shall have the right to
20 participate in one of the other retirement programs offered
21 by the System and receive service credit in such other
22 retirement program for any years of employment following the
23 termination.
24 (j) (h) Vesting. Employer contributions shall be vested
25 after five years of employment. If an employee a participant
26 terminates employment prior to completing five years of
27 service, the employee participant shall be entitled to a
28 benefit in accordance with the terms of the employer's
29 retirement plan which is based on the accumulation value
30 attributable to the employee's participant's contributions
31 and any investment return experience thereon. Benefits for
32 employees participants who terminate with at least five years
33 of service shall be in accordance with the terms of the
34 optional employer's retirement plan and based on the
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1 accumulation value attributable to both the employer and the
2 employee's participant's contributions and any investment
3 return experience thereon. Any employer contributions which
4 are forfeited shall be held in escrow by the funding company
5 investing those contributions and shall be used to reduce the
6 next premium payment due from the employer.
7 (Source: P.A. 89-430, eff. 12-15-95.)
8 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
9 Sec. 15-165. To certify amounts and submit vouchers.
10 (a) The Board shall certify to the Governor on or before
11 November 15 of each year the appropriation required from
12 State funds for the purposes of this System for the following
13 fiscal year. The certification shall include a copy of the
14 actuarial recommendations upon which it is based.
15 (b) The Board shall certify to the State Comptroller or
16 employer, as the case may be, from time to time, by its
17 president and secretary, with its seal attached, the amounts
18 payable to the System from the various funds.
19 (c) Beginning in State fiscal year 1996, on or as soon
20 as possible after the 15th day of each month the Board shall
21 submit vouchers for payment of State contributions to the
22 System, in a total monthly amount of one-twelfth of the
23 required annual State contribution certified under subsection
24 (a). These vouchers shall be paid by the State Comptroller
25 and Treasurer by warrants drawn on the funds appropriated to
26 the System for that fiscal year.
27 If in any month the amount remaining unexpended from all
28 other appropriations to the System for the applicable fiscal
29 year (including the appropriations to the System under
30 Section 8.12 of the State Finance Act and Section 1 of the
31 State Pension Funds Continuing Appropriation Act) is less
32 than the amount lawfully vouchered under this Section, the
33 difference shall be paid from the General Revenue Fund under
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1 the continuing appropriation authority provided in Section
2 1.1 of the State Pension Funds Continuing Appropriation Act.
3 (d) So long as the payments received are the full amount
4 lawfully vouchered under this Section, payments received by
5 the System under this Section shall be applied first toward
6 the employer contribution to the optional retirement program
7 established under Section 15-158.2. Payments shall be
8 applied second toward the employer's portion of the normal
9 costs of the System, as defined in subsection (f) of Section
10 15-155. The balance shall be applied toward the unfunded
11 actuarial liabilities of the System.
12 (e) In the event that the System does not receive, as a
13 result of legislative enactment or otherwise, payments
14 sufficient to fully fund the employer contribution to the
15 optional retirement program established under Section
16 15-158.2 and to fully fund that portion of the employer's
17 portion of the normal costs of the System, as calculated in
18 accordance with Section 15-155(a-1), then any payments
19 received shall be applied proportionately to the optional
20 retirement program established under Section 15-158.2 and to
21 the employer's portion of the normal costs of the System, as
22 calculated in accordance with Section 15-155(a-1).
23 (Source: P.A. 88-593, eff. 8-22-94.)
24 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
25 Sec. 15-185. Annuities, etc., exempt. The accumulated
26 employee and employer contributions shall be held in trust
27 for each participant and annuitant, and this trust shall be
28 treated as a spendthrift trust. Except as provided in this
29 Article, all cash, securities and other property of this
30 system, all annuities and other benefits payable under this
31 Article and all accumulated credits of participants and
32 annuitants in this system and the right of any person to
33 receive an annuity or other benefit under this Article, or a
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1 refund of contributions, shall not be subject to judgment,
2 execution, garnishment, attachment, or other seizure by
3 process, in bankruptcy or otherwise, nor to sale, pledge,
4 mortgage or other alienation, and shall not be assignable.
5 The board, however, may deduct from the benefits, refunds and
6 credits payable to the participant, annuitant or beneficiary,
7 amounts owed by the participant or annuitant to the system.
8 No attempted sale, transfer or assignment of any benefit,
9 refund or credit shall prevent the right of the board to make
10 the deduction and offset authorized in this Section. Any
11 participant or annuitant may authorize the board to deduct
12 from disability benefits or annuities, premiums due under any
13 group hospital-surgical insurance program which is sponsored
14 or approved by any employer; however, the deductions from
15 disability benefits may not begin prior to 6 months after the
16 disability occurs.
17 A person receiving an annuity or benefit under this
18 Article may authorize withholding from that annuity or
19 benefit in accordance with the provisions of the State Salary
20 and Annuity Withholding Act.
21 This amendatory Act of 1989 is a clarification of
22 existing law and shall be applicable to every participant and
23 annuitant without regard to whether status as an employee
24 terminates before the effective date of this amendatory Act
25 of 1989.
26 (Source: P.A. 86-273; 86-1488.)
27 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
28 (Text of Section before amendment by P.A. 89-507)
29 Sec. 16-106. Teacher. "Teacher": The following
30 individuals, provided that, for employment prior to July 1,
31 1990, they are employed on a full-time basis, or if not
32 full-time, on a permanent and continuous basis in a position
33 in which services are expected to be rendered for at least
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1 one school term:
2 (1) Any educational, administrative, professional
3 or other staff employed in the public common schools
4 included within this system in a position requiring
5 certification under the law governing the certification
6 of teachers;
7 (2) Any educational, administrative, professional
8 or other staff employed in any facility of the Department
9 of Children and Family Services, the Department of Mental
10 Health and Developmental Disabilities, or the Department
11 of Rehabilitation Services, in a position requiring
12 certification under the law governing the certification
13 of teachers, and any person who (i) works in such a
14 position for the Department of Corrections, (ii) was a
15 member of this System on May 31, 1987, and (iii) did not
16 elect to become a member of the State Employees'
17 Retirement System pursuant to Section 14-108.2 of this
18 Code;
19 (3) Any regional superintendent of schools,
20 assistant regional superintendent of schools, State
21 Superintendent of Education; any person employed by the
22 State Board of Education as an executive; any executive
23 of the boards engaged in the service of public common
24 school education in school districts covered under this
25 system of which the State Superintendent of Education is
26 an ex-officio member;
27 (4) Any employee of a school board association
28 operating in compliance with Article 23 of the School
29 Code who is certificated under the law governing the
30 certification of teachers;
31 (5) Any person employed by the retirement system as
32 an executive, and any person employed by the retirement
33 system who is certificated under the law governing the
34 certification of teachers;
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1 (6) Any educational, administrative, professional
2 or other staff employed by and under the supervision and
3 control of a regional superintendent of schools, provided
4 such employment position requires the person to be
5 certificated under the law governing the certification of
6 teachers and is in an educational program serving 2 or
7 more districts in accordance with a joint agreement
8 authorized by the School Code or by federal legislation;
9 (7) Any educational, administrative, professional
10 or other staff employed in an educational program
11 serving 2 or more school districts in accordance with a
12 joint agreement authorized by the School Code or by
13 federal legislation and in a position requiring
14 certification under the laws governing the certification
15 of teachers;
16 (8) Any officer or employee of a statewide teacher
17 organization or officer of a national teacher
18 organization who is certified under the law governing
19 certification of teachers, provided: (i) the individual
20 had previously established creditable service under this
21 Article, (ii) the individual files with the system, on or
22 before January 1, 1990, an irrevocable election to become
23 a member, and (iii) the individual does not receive
24 credit for such service under any other Article of this
25 Code;
26 (9) Any educational, administrative, professional,
27 or other staff employed in a charter school operating in
28 compliance with the Charter Schools Law who is
29 certificated under the law governing the certification of
30 teachers.
31 An annuitant receiving a retirement annuity under this
32 Article or under Article 17 of this Code who is temporarily
33 employed by a board of education or other employer not
34 exceeding that permitted under Section 16-118 is not a
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1 "teacher" for purposes of this Article. A person who has
2 received a single-sum retirement benefit under Section
3 16-136.4 of this Article is not a "teacher" for purposes of
4 this Article.
5 (Source: P.A. 89-450, eff. 4-10-96.)
6 (Text of Section after amendment by P.A. 89-507)
7 Sec. 16-106. Teacher. "Teacher": The following
8 individuals, provided that, for employment prior to July 1,
9 1990, they are employed on a full-time basis, or if not
10 full-time, on a permanent and continuous basis in a position
11 in which services are expected to be rendered for at least
12 one school term:
13 (1) Any educational, administrative, professional
14 or other staff employed in the public common schools
15 included within this system in a position requiring
16 certification under the law governing the certification
17 of teachers;
18 (2) Any educational, administrative, professional
19 or other staff employed in any facility of the Department
20 of Children and Family Services or the Department of
21 Human Services, in a position requiring certification
22 under the law governing the certification of teachers,
23 and any person who (i) works in such a position for the
24 Department of Corrections, (ii) was a member of this
25 System on May 31, 1987, and (iii) did not elect to become
26 a member of the State Employees' Retirement System
27 pursuant to Section 14-108.2 of this Code;
28 (3) Any regional superintendent of schools,
29 assistant regional superintendent of schools, State
30 Superintendent of Education; any person employed by the
31 State Board of Education as an executive; any executive
32 of the boards engaged in the service of public common
33 school education in school districts covered under this
34 system of which the State Superintendent of Education is
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1 an ex-officio member;
2 (4) Any employee of a school board association
3 operating in compliance with Article 23 of the School
4 Code who is certificated under the law governing the
5 certification of teachers;
6 (5) Any person employed by the retirement system as
7 an executive, and any person employed by the retirement
8 system who is certificated under the law governing the
9 certification of teachers;
10 (6) Any educational, administrative, professional
11 or other staff employed by and under the supervision and
12 control of a regional superintendent of schools, provided
13 such employment position requires the person to be
14 certificated under the law governing the certification of
15 teachers and is in an educational program serving 2 or
16 more districts in accordance with a joint agreement
17 authorized by the School Code or by federal legislation;
18 (7) Any educational, administrative, professional
19 or other staff employed in an educational program
20 serving 2 or more school districts in accordance with a
21 joint agreement authorized by the School Code or by
22 federal legislation and in a position requiring
23 certification under the laws governing the certification
24 of teachers;
25 (8) Any officer or employee of a statewide teacher
26 organization or officer of a national teacher
27 organization who is certified under the law governing
28 certification of teachers, provided: (i) the individual
29 had previously established creditable service under this
30 Article, (ii) the individual files with the system, on or
31 before January 1, 1990, an irrevocable election to become
32 a member, and (iii) the individual does not receive
33 credit for such service under any other Article of this
34 Code;
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1 (9) Any educational, administrative, professional,
2 or other staff employed in a charter school operating in
3 compliance with the Charter Schools Law who is
4 certificated under the law governing the certification of
5 teachers.
6 An annuitant receiving a retirement annuity under this
7 Article or under Article 17 of this Code who is temporarily
8 employed by a board of education or other employer not
9 exceeding that permitted under Section 16-118 is not a
10 "teacher" for purposes of this Article. A person who has
11 received a single-sum retirement benefit under Section
12 16-136.4 of this Article is not a "teacher" for purposes of
13 this Article.
14 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
15 revised 10-3-96.)
16 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
17 Sec. 16-140. Survivors' benefits - definitions. For the
18 purpose of Sections 16-138 through 16-143.2, the following
19 terms shall have the following meanings, unless the context
20 otherwise requires:
21 (1) "Average salary": the average salary for the highest
22 4 consecutive years within the last 10 years of creditable
23 service immediately preceding date of death or retirement,
24 whichever is applicable, or the average salary for the total
25 creditable service if service is less than 4 years.
26 (2) "Member": any teacher included in the membership of
27 the system. However, a teacher who becomes an annuitant of
28 the system or a teacher whose services terminate after 20
29 years of service from any cause other than retirement is
30 considered a member, subject to the conditions and
31 limitations stated in this Article.
32 (3) "Dependent beneficiary": (A) a surviving spouse of a
33 member or annuitant who was married to the member or
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1 annuitant for the 12 month period immediately preceding and
2 on the date of death of such member or annuitant, except
3 where a child is born of such marriage, in which case the
4 qualifying period shall not be applicable; (A-1) a surviving
5 spouse of a member or annuitant who (i) was married to the
6 member or annuitant on the date of the member or annuitant's
7 death, (ii) was married to the member or annuitant for a
8 period of at least 12 months (but not necessarily the 12
9 months immediately preceding the member or annuitant's
10 death), (iii) first applied for a survivor's benefit before
11 January 1, 1994, and (iv) has not received a benefit under
12 subsection (a) of Section 16-141 or paragraph (1) of Section
13 16-142; (B) an eligible child of a member or annuitant; and
14 (C) a dependent parent.
15 Unless otherwise designated by the member, eligibility
16 for benefits shall be in the order named, except that a
17 dependent parent shall be eligible only if there is no other
18 dependent beneficiary. Any benefit to be received by or paid
19 to a dependent beneficiary to be determined under this
20 paragraph as provided in Sections 16-141 and 16-142 may be
21 received by or paid to a trust established for such dependent
22 beneficiary if such dependent beneficiary is living at the
23 time such benefit would be received by or paid to such trust.
24 (4) "Eligible child": an unmarried natural or adopted
25 child of the member or annuitant under age 18 (age 22 if a
26 full-time student). An unmarried natural or adopted child,
27 regardless of age, who is dependent by reason of a physical
28 or mental disability, except any such child receiving
29 benefits under Article III of the Illinois Public Aid Code,
30 is eligible for so long as such physical or mental disability
31 continues. An adopted child, however, is eligible only if
32 the proceedings for adoption were finalized while the child
33 was a minor.
34 For purposes of this subsection, "disability" means an
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1 inability to engage in any substantial gainful activity by
2 reason of any medically determinable physical or mental
3 impairment which can be expected to result in death or which
4 has lasted or can be expected to last for a continuous period
5 of not less than 12 months.
6 The changes made to this Section by this amendatory Act
7 of 1997, relating to benefits for certain unmarried children
8 who are full-time students under age 22, apply without regard
9 to whether the deceased member was in service on or after the
10 effective date of this amendatory Act of 1997. These changes
11 do not authorize the repayment of a refund or a re-election
12 of benefits, and any benefit or increase in benefits
13 resulting from these changes is not payable retroactively for
14 any period before the effective date of this amendatory Act
15 of 1997.
16 (5) "Dependent parent": a parent who was receiving at
17 least 1/2 of his or her support from a member or annuitant
18 for the 12-month period immediately preceding and on the date
19 of such member's or annuitant's death, provided however, that
20 such dependent status terminates upon a member's acceptance
21 of a refund for survivor benefit contributions as provided
22 under Section 16-142.
23 (6) "Non-dependent beneficiary": any person,
24 organization or other entity designated by the member who
25 does not qualify as a dependent beneficiary.
26 (7) "In service": the condition of a member being in
27 receipt of salary as a teacher at any time within 12 months
28 immediately before his or her death, being on leave of
29 absence for which the member, upon return to teaching, would
30 be eligible to purchase service credit under subsection
31 (b)(5) of Section 16-127, or being in receipt of a disability
32 or occupational disability benefit. This term does not
33 include any annuitant or member who previously accepted a
34 refund of survivor benefit contributions under paragraph (1)
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1 of Section 16-142 unless the conditions specified in
2 subsection (b) of Section 16-143.2 are met.
3 (Source: P.A. 89-430, eff. 12-15-95.)
4 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
5 Sec. 16-151. Refund. Upon termination of employment as a
6 teacher for any cause other than death or retirement, a
7 member shall be paid the following amount upon demand made at
8 least not previous to 4 months after ceasing to teach:
9 (1) from the Members' Contribution Reserve, the
10 actual total contributions paid by or on behalf of the
11 member for membership service which have not been
12 previously refunded and which are then credited to the
13 member's individual account in the Members' Contribution
14 Reserve, without interest thereon, and
15 (2) from the Employer's Contribution Reserve, the
16 actual contributions not previously refunded, paid by or
17 on behalf of the member for prior service and towards the
18 cost of the automatic annual increase in retirement
19 annuity as provided under Section 16-152, without
20 interest thereon.
21 Any such amounts may be paid to the member either in one
22 sum or, at the election of the board, in 4 quarterly
23 payments.
24 Contributions credited to a member for periods of
25 disability as provided in Sections 16-149 and 16-149.1 are
26 not refundable.
27 Upon acceptance of a refund, all accrued rights and
28 credits in the System are forfeited and may be reinstated
29 only if the refund is repaid together with interest from the
30 date of the refund to the date of repayment at the following
31 rates compounded annually: for periods prior to July 1,
32 1965, regular interest; for periods from July 1, 1965 to June
33 30, 1977, 4% per year; for periods on and after July 1, 1977,
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1 regular interest. Repayment shall be permitted upon return to
2 membership; however, service credit previously forfeited by a
3 refund and subsequently reinstated may not be used as a basis
4 for the payment of benefits, other than a refund of
5 contributions, prior to the completion of one year of
6 creditable service following the refund, except when
7 repayment is permitted under the provisions of the
8 "Retirement Systems Reciprocal Act" contained in Article 20.
9 (Source: P.A. 83-1440.)
10 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
11 Sec. 16-155. Report to system and payment of deductions.
12 (a) The governing body of each school district shall
13 make two deposits each month. The deposit for member
14 contributions for salary paid between the first and the
15 fifteenth of the month is due by the 25th of the month. The
16 deposit of member contributions for salary paid between the
17 sixteenth and last day of the month is due by the 10th of the
18 following month. All required contributions for salary
19 earned during a school term are due by July 10 next following
20 the close of such school term.
21 The governing body of each State institution coming under
22 this retirement system, the State Comptroller or other State
23 officer certifying payroll vouchers including payments of
24 salary or wages to teachers, and any other employer of
25 teachers, shall, monthly, forward to the secretary of the
26 retirement system the member contributions required under
27 this Article.
28 Each employer specified above shall, prior to August 15
29 of each year, forward to the System a detailed statement,
30 verified in all cases of school districts by the secretary or
31 clerk of the district, of the amounts so contributed since
32 the period covered by the last previous annual statement,
33 together with required contributions not yet forwarded, such
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1 payments being payable to the System.
2 The board may prescribe rules governing the form,
3 content, investigation, control, and supervision of such
4 statements. The governing body of each school district
5 shall, at the same time, send a copy of the statement to the
6 regional superintendent of schools for the region in which
7 the district under its control is located. If no teacher in
8 a school district comes under the provisions of this Article,
9 the governing body of the district shall so state under the
10 oath of its secretary to this system, and shall at the same
11 time forward a copy of the statement to the regional
12 superintendent of schools.
13 (b) If the governing body of an employer that is not a
14 State agency a school district fails to forward such required
15 contributions within the time permitted in subsection (a)
16 above, the System shall notify the district of an additional
17 amount due, equal to the greater of the following: (1) an
18 amount representing the interest lost by the system due to
19 late forwarding of contributions, calculated for the number
20 of days which the school district is late in forwarding
21 contributions at a rate of interest prescribed by the board,
22 based on its investment experience; or (2) $50.
23 (c) If the system, on August 15, is not in receipt of
24 the detailed statements required under this Section of any
25 school district or other employing unit, such school district
26 or other employing unit shall pay to the system an amount
27 equal to $250 for each day that elapses from August 15, until
28 the day such statement is filed with the system.
29 (Source: P.A. 86-273.)
30 (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
31 Sec. 16-158.1. Actions to enforce payments by school
32 districts and other employing units. Any school district or
33 other employing unit failing to transmit to the System
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1 contributions required of it under this Article or
2 contributions required of teachers, for more than 90 days
3 after such contributions are due is subject to the following:
4 after giving notice to the district or other unit, the System
5 may certify to the State Comptroller or the Regional
6 Superintendent of Schools the amounts of such delinquent
7 payments and the State Comptroller or the Regional
8 Superintendent of Schools shall deduct the amounts so
9 certified or any part thereof from any grants of State funds
10 to be remitted to the school district or other employing unit
11 involved and shall pay the amount so deducted to the System.
12 If State funds from which such deductions may be made are not
13 available, the System may proceed against the school district
14 or other employing unit to recover the amounts of such
15 delinquent payments in the appropriate circuit court.
16 The System may provide for an audit of the records of a
17 school district or other employing unit as may be required to
18 establish the amounts of required contributions. The school
19 district or other employing unit shall make its records
20 available to the System for the purpose of such audit. The
21 cost of such audit shall be added to the amount of the
22 delinquent payments and shall be recovered by the System from
23 the school district or other employing unit at the same time
24 and in the same manner as the delinquent payments are
25 recovered.
26 (Source: P.A. 85-1008.)
27 (40 ILCS 5/16-169.1 new)
28 Sec. 16-169.1. Testimony and the production of records.
29 The secretary of the Board shall have the power to issue
30 subpoenas to compel the attendance of witnesses and the
31 production of documents and records, including law
32 enforcement records maintained by law enforcement agencies,
33 in conjunction with a disability claim, administrative review
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1 proceeding, or felony forfeiture investigation. The fees of
2 witnesses for attendance and travel shall be the same as the
3 fees of witnesses before the circuit courts of this State and
4 shall be paid by the party seeking the subpoena. The Board
5 may apply to any circuit court in the State for an order
6 requiring compliance with a subpoena issued under this
7 Section. Subpoenas issued under this Section shall be
8 subject to applicable provisions of the Code of Civil
9 Procedure.
10 (40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
11 Sec. 16-179. To be trustee of reserves and to invest
12 funds. To be the trustee of the reserves created under this
13 Article, and to invest and reinvest such reserves, subject to
14 the requirements and restrictions set forth in Sections
15 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
16 No bank or savings and loan association shall receive
17 investment funds as permitted by this Section, unless it has
18 complied with the requirements established pursuant to
19 Section 6 of "An Act relating to certain investments of
20 public funds by public agencies", approved July 23, 1943, as
21 now or hereafter amended. The limitations set forth in such
22 Section 6 shall be applicable only at the time of investment
23 and shall not require the liquidation of any investment at
24 any time.
25 The board shall have the authority to enter into such
26 agreements and to execute such documents as it determines to
27 be necessary to complete any investment transaction.
28 All investments shall be clearly held and accounted for
29 to indicate ownership by the system. The board may direct
30 the registration of securities or the holding in interests in
31 real property in the name of the system or in the name of a
32 nominee created for the express purpose of registration of
33 securities or holding interests in real property by a
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1 national or state bank or trust company authorized to conduct
2 a trust business in the State of Illinois. The board may
3 hold title to interests in real property in the name of the
4 system or in the name of a title holding corporation created
5 for the express purpose of holding title to interests in real
6 property.
7 Investments shall be carried at cost or at a book value
8 determined in accordance with generally accepted accounting
9 principles. No adjustments shall be made in investment
10 carrying values for ordinary current market price
11 fluctuations; but reserves may be provided to account for
12 possible losses or unrealized gains.
13 The book value of investments held by the retirement
14 system in one or more commingled investment accounts shall be
15 the cost of its units of participation in such commingled
16 account or accounts.
17 (Source: P.A. 86-272.)
18 (40 ILCS 5/16-181.3 new)
19 Sec. 16-181.3. To prescribe the manner of payment. To
20 prescribe by rule the manner of repaying refunds and
21 purchasing the various optional service credits permitted
22 under this Article. The rules may prescribe the conditions
23 under which installment payments or partial payments may be
24 accepted and may specify the method of computing any interest
25 due.
26 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
27 Sec. 16-185. Employer's contribution reserve.
28 (a) The Employer's Contribution Reserve shall serve as a
29 clearing account for income and expenses of the System as
30 well as transfers to and from the other reserve accounts
31 established under this Article and adjustments thereto.
32 (b) This reserve shall be credited with:
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1 (1) All amounts contributed by the State, except
2 those credited to other reserve accounts as provided in
3 this Article.
4 (2) The total member and employer contributions
5 except those required by other reserve accounts.
6 (3) The total income from invested assets of the
7 System, and other miscellaneous income.
8 (4) The interest portion of the accumulated
9 contributions of members granted refunds.
10 (5) Contributions made by annuitants to qualify for
11 automatic annual increases in annuity, except those
12 required by other reserve accounts.
13 (c) This reserve shall be charged with:
14 (1) All amounts necessary to be transferred to the
15 Members' Contribution Reserve.
16 (2) All retirement annuity, single-sum retirement
17 benefit and disability retirement annuity payments,
18 including automatic annual increases in annuities, except
19 as provided by other reserve accounts.
20 (3) All amounts necessary to be refunded to
21 withdrawing members except as provided by the Members'
22 Contribution Reserve.
23 (4) All benefits paid to temporarily or
24 accidentally disabled members of this System, and all
25 amounts credited to the accounts of such disabled members
26 in lieu of contributions.
27 (5) All amounts payable as death benefits except as
28 provided by the Members' Contribution Reserve.
29 (6) All amounts necessary for the payment of costs
30 for the health insurance program as provided under this
31 Article.
32 (7) All survivor benefit contributions refunded to
33 an annuitant as provided under Section 16-143.2.
34 (8) All amounts paid in accordance with Section
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1 16-131.1 except as provided by the Members' Contribution
2 Reserve.
3 (9) Interest to be credited to other reserve
4 accounts as specified in this Article.
5 (10) Recognition of unrealized gains or losses in
6 market value, upon adoption of generally accepted
7 accounting principles that allow for such recognition.
8 (Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
9 (40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
10 Sec. 16-187. Custodian of fund - warrants and vouchers -
11 audits. (a) The State Treasurer is ex-officio custodian of
12 the funds of the retirement system. He or she may process
13 payments from the funds of the system for the purposes herein
14 specified upon warrants or direct deposit transmittals of the
15 State Comptroller. Commencing January 1, 1987, the State
16 Treasurer shall credit interest, at current rates, for any
17 monies directly held. Such interest shall be calculated
18 using an average daily cash basis. He or she shall be liable
19 on the Treasurer's official bond for the proper performance
20 of duties and be held accountable for all cash and securities
21 in his or her custody. He or she shall keep books and
22 accounts in the manner prescribed by the board, and they
23 shall always be subject to the inspection of the board or any
24 member thereof.
25 (b) The State Comptroller may draw warrants or prepare
26 direct deposit transmittals payable from the fund upon the
27 State Treasurer for the purposes herein provided upon the
28 presentation of vouchers approved by the president and the
29 secretary of the board. The board shall file with the State
30 Comptroller an attested copy of a resolution designating such
31 persons as his authority for making payments upon such
32 vouchers.
33 (c) At the end of each fiscal year, the board shall have
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1 the accounts and records of the system audited by a person
2 authorized to practice public accounting under the laws of
3 this state selected by the Auditor General. Copies of all
4 audits performed shall be filed with the State Board of
5 Education and the Auditor General.
6 (Source: P.A. 85-1008.)
7 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
8 Sec. 17-116.1. Early retirement without discount. A
9 member retiring after June 1, 1980 and before June 30, 2005
10 1995 and within 6 months of the last day of teaching for
11 which retirement contributions were required, may elect at
12 the time of application to make a one time employee
13 contribution to the system and thereby avoid the early
14 retirement reduction in allowance specified in paragraph (4)
15 of Section 17-116 of this Article. The exercise of the
16 election shall obligate the employer to also make a one time
17 non-refundable contribution to the fund.
18 The one-time employee contribution shall be equal to 7%
19 of the retiring member's highest full-time annual salary rate
20 used in the determination of the average salary rate for
21 retirement pension, or if not full-time then the full-time
22 equivalent, multiplied by (1) the number of years the teacher
23 is under age 60, or (2) the number of years the employee's
24 creditable service is less than 35 years, whichever is less.
25 The employer contribution shall be 20% of such salary
26 multiplied by such number of years.
27 Upon receipt of the application and election, the board
28 shall determine the one time employee and employer
29 contributions. The provisions of this Section shall not be
30 applicable until all the above outlined contributions have
31 been received by the fund; however, the date such
32 contributions are received shall not be considered in
33 determining the effective date of retirement.
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1 The number of employees who may retire under this Section
2 in any year may be limited at the option of the employer to a
3 specified percentage of those eligible, not lower than 30%,
4 with the right to participate to be allocated among those
5 applying on the basis of seniority in the service of the
6 employer.
7 Notwithstanding Section 17-157, the extension of the
8 deadline for early retirement without discount under this
9 Section effected by this amendatory Act of 1997 also applies
10 to persons who withdrew from service on or after June 30,
11 1995 and before the effective date of this amendatory Act of
12 1997. Any such person who qualifies for early retirement
13 without discount under this Section, applies to the Fund
14 within 90 days after the effective date of this amendatory
15 Act of 1997, and pays the required employee contribution may
16 have his or her retirement pension recalculated in accordance
17 with this Section; the resulting increase shall be effective
18 retroactively to the starting date of the retirement pension.
19 (Source: P.A. 86-272.)
20 (40 ILCS 5/17-134.1 new)
21 Sec. 17-134.1. Labor organization employees.
22 (a) A former teacher who is employed by a teacher or
23 labor organization and is not eligible to participate under
24 subdivision (4) of Section 17-134 because he or she is not on
25 a special leave of absence may elect to participate in the
26 Fund for the duration of that employment by so notifying the
27 Fund in writing. Participation shall be subject to the same
28 conditions as are applicable to persons participating under
29 that subdivision (4), and service credit shall be contingent
30 upon the required contributions being received by the Fund.
31 (b) A person who participates in the Fund under
32 subsection (a) may establish service credit for periods of
33 such employment that took place before beginning
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1 participation under this Section by submitting a written
2 application to the Fund. Credit shall be granted upon
3 payment to the Fund of an amount to be determined by the
4 Fund, equal to (i) the employee contributions that would have
5 been paid if the person had participated under subdivision
6 (4) of Section 17-134 during the period for which service
7 credit is to be established, based on the actual salary
8 received, plus (ii) the employer's normal cost associated
9 with that service credit, plus (iii) interest on items (i)
10 and (ii) at the rate of 6% per year, compounded annually,
11 from the date of the service established to the date of
12 payment. Service credit under this subsection shall not be
13 granted until the required contribution has been paid in
14 full; the contribution may be paid at any time before
15 retirement.
16 (c) A person who participates in the Fund under
17 subsection (a) may reestablish any service credits previously
18 forfeited by acceptance of a refund by paying to the Fund the
19 amount of the refund plus interest thereon at the rate of 5%
20 per annum, compounded annually, from the date of the refund
21 to the date of payment.
22 (d) Rollover contributions from other retirement plans
23 qualified under the Internal Revenue Code of 1986 may be used
24 to make the payments required under subsections (b) and (c).
25 (e) No service credit may be established under this
26 Section for any period of employment for which the person
27 receives service credit under any other provision of this
28 Code.
29 (40 ILCS 5/18-112.6 new)
30 Sec. 18-112.6. Service credit for member of educational
31 board. Until July 1, 1998, an active participant in this
32 System who has at least 6 years of service as a judge may
33 establish up to 2 years of service credit in this System for
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1 a period during which the participant held elective office as
2 a member of a board of education in this State or a member of
3 the board of trustees of a community college district in this
4 State, by applying to the Board in writing and paying to the
5 System an amount equal to (1) employee contributions based on
6 the rate in effect for a judge on the date of becoming a
7 participant in this System and the salary received by the
8 judge on that date, plus (2) the employer's share of the
9 normal cost of the benefits being established, plus (3)
10 interest thereon at the prescribed rate, compounded annually,
11 from the date of membership to the date of payment. However,
12 credit may not be established under this Section for any
13 period for which the judge has received credit under any
14 other pension fund or retirement system subject to this Code,
15 unless that credit has been terminated.
16 (40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
17 Sec. 18-133.1. Pickup Pick up of contributions.
18 (a) Each employer may pick up the participant
19 contributions required under Section 18-133 for all salary
20 earned after December 31, 1981. If an employer decides not
21 to pick up the contributions, the employee contributions
22 shall continue to be deducted from salary. If contributions
23 are picked up they shall be treated as employer contributions
24 in determining tax treatment under the United States Internal
25 Revenue Code. However, the employer shall continue to
26 withhold Federal and State income taxes based upon these
27 contributions until the Internal Revenue Service or the
28 Federal courts rule that pursuant to Section 414(h) of the
29 United States Internal Revenue Code, these contributions
30 shall not be included as gross income of the participant
31 until such time as they are distributed or made available.
32 The employer shall pay these participant contributions from
33 the same source of funds which is used in paying earnings to
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1 the participant. The employer may pick up these
2 contributions by a reduction in the cash salary of the
3 participant or by an offset against a future salary increase
4 or by a combination of a reduction in salary and offset
5 against a future salary increase. If participant
6 contributions are picked up they shall be treated for all
7 purposes of this Article as participant contributions were
8 considered prior to the time they were picked up.
9 (b) Subject to the requirements of federal law, a
10 participant may elect to have the employer pick up optional
11 contributions that the participant has elected to pay to the
12 System, and the contributions so picked up shall be treated
13 as employer contributions for the purposes of determining
14 federal tax treatment. The employer shall pick up the
15 contributions by a reduction in the cash salary of the
16 participant and shall pay the contributions from the same
17 fund that is used to pay earnings to the participant. The
18 election to have optional contributions picked up is
19 irrevocable and the optional contributions may not thereafter
20 be prepaid, by direct payment or otherwise.
21 (Source: P.A. 83-1440.)
22 (40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
23 Sec. 21-103. Political subdivision - election of
24 coverage.
25 (a) Any political subdivision other than a school
26 district and other than a political subdivision which is
27 participating in the Illinois Municipal Retirement Fund under
28 Article 7 of this Code may, by resolution of the governing
29 body (in the case of a township, at an annual town meeting or
30 at a special town meeting called for that purpose), or by
31 referendum, elect to have its employees covered by the Social
32 Security Act.
33 Whenever a petition requesting Social Security coverage
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1 for employees, signed by not less than 5% of the legal voters
2 of the political subdivision, is presented to the governing
3 body, such governing body shall cause such proposition to be
4 certified to the proper election officials who shall submit
5 the proposition to the voters at the next appropriate
6 election in accordance with the general election law, or in
7 the case of a township at the next annual town meeting if the
8 petition is received more than 15 and less than 60 days
9 before the annual town meeting, or else at a special town
10 meeting called for that purpose. In the territory of the
11 political subdivision every elector may vote upon the
12 proposition stated in the petition. Such proposition shall
13 be in substantially the following form:
14 -------------------------------------------------------------
15 Shall....(political subdivision)
16 enter into a coverage agreement with
17 the Social Security Division of YES
18 the State Employees' Retirement ----------------------
19 System for extension of Federal Social NO
20 Security coverage to employees
21 of....(political subdivision)?
22 -------------------------------------------------------------
23 If a majority of all of the votes cast upon the
24 proposition is in favor thereof, or if the governing body has
25 adopted a resolution or ordinance providing for coverage of
26 its employees, the governing body shall execute the coverage
27 agreement provided by the State Agency and submit such
28 coverage agreement to the State Agency for approval. The
29 coverage agreement shall be approved by the State Agency if
30 it meets the requirements of subsection (b).
31 (b) Each coverage agreement of a political subdivision
32 and any amendment thereof shall be approved by the State
33 Agency if it finds that such coverage agreement, or such
34 coverage agreement as amended, is in conformity with such
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1 requirements as are provided in the regulations of the State
2 Agency, except that no such coverage agreement shall be
3 approved unless:
4 (1) it is in conformity with the requirements of
5 the Social Security Act and with the Federal-State
6 Agreement entered into under this Article;
7 (2) it provides that all services which constitute
8 employment and are performed in the employ of the
9 political subdivision by any employees thereof shall be
10 covered by the coverage agreement, except that such
11 agreement may, if the political subdivision so requests,
12 exclude all services in one or more classes of elective
13 positions, or positions the compensation for which is on
14 a fee basis;
15 (3) it provides for such methods of administration
16 of the coverage agreement by the political subdivision as
17 are found by the State Agency to be necessary for the
18 proper and efficient administration of the coverage
19 agreement; and
20 (4) it provides for an effective date of coverage
21 not earlier than the first day of the fifth calendar year
22 preceding the year in which the resulting modification of
23 the Federal-State Agreement is agreed to by the Secretary
24 and the State.
25 (c) In addition to the requirements in subsection (b),
26 no coverage agreement which provides for an effective date of
27 coverage prior to January 1, 1987 shall be approved unless:
28 (1) it specifies the sources from which the funds
29 required of it by this Article are expected to be
30 derived, and contains reasonable assurance that such
31 sources will be adequate for such purpose;
32 (2) it contains a promise to deliver the proper
33 funds to the State Agency on or before the date requested
34 by the State Agency;
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1 (3) it specifies some officer to act as custodian
2 of all funds collected and to be responsible to the State
3 Agency for the delivery of such funds;
4 (4) it provides that the political subdivision
5 shall pay into the Social Security Contribution Fund
6 contributions on covered wages at such times as the State
7 Agency may by regulations prescribe, in the amounts and
8 at the rates provided by this Article; and
9 (5) it provides that the political subdivision will
10 make such reports as the State Agency may from time to
11 time require, and comply with such provisions as the
12 State Agency or the Secretary may from time to time find
13 necessary.
14 (Source: P.A. 85-442.)
15 (40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
16 Sec. 21-109. Payment of Contributions.
17 (a) Absolute coverage group: Each political subdivision
18 which has established Social Security coverage for its
19 employees under this Article shall pay into the Social
20 Security Contribution Fund contributions on covered wages
21 paid prior to January 1, 1987 in the amounts and at the rates
22 prescribed by subchapters A and B of the Federal Insurance
23 Contributions Act at the times prescribed in the regulations
24 of the State Agency. Taxes due on wages covered under the
25 Social Security Coverage Agreement paid after December 31,
26 1986 shall be paid by each political subdivision to the
27 Internal Revenue Service in the amounts and at the rates
28 specified in the Federal Insurance Contributions Act and at
29 the times prescribed in the regulations of the Internal
30 Revenue Service.
31 Every political subdivision required to make payments is
32 authorized in consideration of the employee's retention in,
33 or entry upon, employment to impose upon each of its
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1 employees, as to services which are covered by the coverage
2 agreement, a contribution with respect to wages computed by
3 applying the rates of contribution prescribed by Subchapter A
4 of the Federal Insurance Contributions Act, and to deduct the
5 amount of such contribution from such employee's wages when
6 paid.
7 Failure to deduct such contribution shall not relieve the
8 employee or employer of liability therefor.
9 (b) Retirement system coverage group: As a condition of
10 its coverage agreement, the governing body or board of
11 trustees of any retirement system which has adopted Social
12 Security coverage for its members under this Article shall
13 assume responsibility to the State Agency for the compiling
14 of wage data, the collection of related contributions
15 prescribed by subchapters A and B of the Federal Insurance
16 Contributions Act, and the timely reporting and payment of
17 such items upon the wages of all covered employees paid prior
18 to January 1, 1987 in the manner and at the times prescribed
19 by the State Agency.
20 Coincident to the adoption of coverage, the governing
21 body or board of trustees of the retirement system shall
22 promulgate rules and regulations in conformity with federal
23 regulations, applicable to the State or local governmental
24 entities or to the agencies and employees participating
25 therein, to insure the correct application of coverage and
26 the timely and accurate reporting of wages and collection of
27 contributions.
28 In the event of failure by the retirement system or the
29 governmental entities or agencies participating therein to
30 comply with the timely reporting and payment requirements
31 imposed by this Section, the retirement system shall be
32 assessed any federal interest or late filing penalties
33 arising therefrom.
34 The contributions collected under this Section by any
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1 retirement system which elects to adopt coverage shall be
2 remitted at such times as the State Agency shall prescribe
3 for deposit into the Social Security Contribution Fund.
4 The employees comprising the executive and administrative
5 staff of any retirement system which elects to adopt the
6 provisions of this Article shall have the contributions made
7 by the body employing them.
8 (c) If more or less than the correct amount of
9 contributions is paid to the State Agency, proper adjustment,
10 or refund without interest if adjustment is impractical,
11 shall be made in such manner and at such times as the State
12 Agency shall prescribe.
13 (Source: P.A. 85-442.)
14 (40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
15 Sec. 21-115. Special fund abolished; designation of
16 remittance agents.
17 (a) The Social Security Contribution Fund is abolished
18 at the close of business on June 30, 1997. Any balance then
19 remaining in that Fund shall be transferred to the Social
20 Security Administration Fund created under Section 21-109.1,
21 and any amounts thereafter designated for deposit into the
22 Social Security Contribution Fund shall instead be deposited
23 into the Social Security Administration Fund. There is
24 hereby established a special fund to be known as the Social
25 Security Contribution Fund. Such fund shall consist of and
26 there shall be deposited in such fund (1) all contributions,
27 interest, and penalties collected under this Article, except
28 as provided in subsection (f) of this Section, (2) all sums
29 recovered upon the bond of the custodian or otherwise for
30 losses sustained by the fund, (3) payments of Medicare taxes
31 in accordance with State Agency regulations, and (4) all
32 other moneys received for the fund from any other source. All
33 moneys in the fund shall be mingled and undivided. Subject to
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1 the provisions of this Article, the State Agency is vested
2 with full power, authority and jurisdiction over the fund,
3 including all moneys and property or securities belonging
4 thereto, and may perform any and all acts whether or not
5 specifically designated, which are necessary to the
6 administration thereof.
7 (b) The Social Security Contribution Fund shall be
8 established and held separate and apart from any other funds
9 or moneys of the State of Illinois and shall be used and
10 administered exclusively for the purpose of this Article.
11 Withdrawals from such fund shall be made solely for the
12 following purposes:
13 (1) payment of amounts required to be paid to the
14 Secretary of the Treasury in relation to Social Security and
15 Medicare coverage,
16 (2) payment of refunds for overpayments which are not
17 otherwise adjustable,
18 (3) payment into the General Revenue Fund of the amount
19 by which penalties collected pursuant to Section 21-112 of
20 this Article exceed the federal interest charges for the
21 corresponding period,
22 (4) payment into the General Revenue Fund of the
23 necessary expenses collected for the performance of tax
24 audits for failure to pay contributions pursuant to Section
25 21-113 of this Article,
26 (5) pursuant to recovery of Social Security
27 contributions paid to the Secretary of the Treasury for the
28 period from January 1, 1979 to June 30, 1981 on sick pay
29 excluded from wages pursuant to Section 209(b) of the Social
30 Security Act, (i) payment of a fee to a private vendor,
31 selected by competitive bidding in accordance with The
32 Illinois Purchasing Act, for the performance of all necessary
33 administrative actions required to obtain and distribute such
34 recovery, the fee to be contingent upon the amount of the
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1 recovery and determined by contract, (ii) payment to the
2 Secretary of the Treasury of State Social Security
3 contributions for nonpayroll earnings received by court
4 reporters between January 1, 1977 and December 31, 1986, and
5 (iii) refund to the General Revenue Fund of the remainder of
6 the employer's share of the contributions so recovered,
7 (6) payment of reasonable expenses incurred in locating
8 former State employees for the purpose of refunding the
9 employees' share of Social Security contributions refunded to
10 the State as a result of the State's actions requesting
11 refunds of contributions paid to the Secretary of the
12 Treasury on sick pay as noted in item (5) and on the amount
13 of voluntary salary reductions by State employees
14 participating in the State's cafeteria plan of fringe
15 benefits under Section 125 of the Internal Revenue Code,
16 (7) out of the employer's share of contributions
17 recovered as a result of the State's action to reduce
18 reported wages by the amount of voluntary salary reduction by
19 State employees participating in the State's cafeteria plan
20 of fringe benefits under Section 125 of the Internal Revenue
21 Code, (i) payment to the Secretary of the Treasury of State
22 Social Security contributions for nonpayroll earnings
23 received by court reporters between January 1, 1977 and
24 December 31, 1986, and (ii) payment of the remainder into the
25 General Revenue Fund, and
26 (8) payment into the Social Security Administration Fund
27 established by Section 21-109.1 of this Article to satisfy
28 the State's liability for Social Security and Medicare
29 contribution liability on wages paid after December 31, 1986,
30 and to dispose of any remaining balance in the Social
31 Security Contribution Fund not required to satisfy the
32 State's liability on wages paid prior to January 1, 1987.
33 (c) From the Social Security Contribution Fund the
34 custodian of the fund shall pay to the Secretary of the
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1 Treasury such amounts at such times as may be directed by the
2 State Agency.
3 (d) The Treasurer of the State of Illinois shall be
4 ex-officio treasurer and custodian of the Social Security
5 Contribution Fund and shall administer such fund in
6 accordance with the provisions of this Article and the
7 directions of the State Agency, and shall pay all warrants of
8 the State Comptroller in accordance with the provisions of
9 this Section and with such regulations as the State Agency
10 may prescribe pursuant thereto.
11 (e) The Comptroller of the State of Illinois is
12 authorized and is directed to draw warrants upon the State
13 Treasurer payable from the Social Security Contribution Fund
14 for purposes provided for in this Article upon presentation
15 of vouchers approved by the State Agency.
16 (b) (f) The State Agency is authorized to designate any
17 retirement system which has adopted coverage under this
18 Article to act as remittance agent on behalf of the State
19 Agency and to make payment of the Social Security
20 contributions collected upon the wages of employees within
21 the retirement system coverage group directly to the
22 designated Federal Reserve Bank without the necessity of
23 deposit or clearance of such collections through the Social
24 Security Contribution Fund. Any retirement system so
25 designated as a remittance agent shall continue to be subject
26 to the regulations of the State Agency with respect to
27 coverage determinations, wage reporting, corrective
28 adjustments, and accountability for tax collections in the
29 same manner as any other covered entity.
30 (Source: P.A. 86-272.)
31 Section 25. The State Pension Funds Continuing
32 Appropriation Act is amended by changing Section 1.1 as
33 follows:
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1 (40 ILCS 15/1.1)
2 Sec. 1.1. Appropriations to certain retirement systems.
3 (a) There is hereby appropriated from the General
4 Revenue Fund to the General Assembly Retirement System, on a
5 continuing monthly basis, the amount, if any, by which the
6 total available amount of all other appropriations to that
7 retirement system for the payment of State contributions is
8 less than the total amount of the vouchers for required State
9 contributions lawfully submitted by the retirement system for
10 that month under Section 2-134 of the Illinois Pension Code.
11 (b) There is hereby appropriated from the General
12 Revenue Fund to the State Universities Retirement System, on
13 a continuing monthly basis, the amount, if any, by which the
14 total available amount of all other appropriations to that
15 retirement system for the payment of State contributions,
16 including any deficiency in the required contributions of the
17 optional retirement program established under Section
18 15-158.2 of the Illinois Pension Code, is less than the total
19 amount of the vouchers for required State contributions
20 lawfully submitted by the retirement system for that month
21 under Section 15-165 of the Illinois Pension Code.
22 (c) There is hereby appropriated from the Common School
23 Fund to the Teachers' Retirement System of the State of
24 Illinois, on a continuing monthly basis, the amount, if any,
25 by which the total available amount of all other
26 appropriations to that retirement system for the payment of
27 State contributions is less than the total amount of the
28 vouchers for required State contributions lawfully submitted
29 by the retirement system for that month under Section 16-158
30 of the Illinois Pension Code.
31 (d) There is hereby appropriated from the General
32 Revenue Fund to the Judges Retirement System of Illinois, on
33 a continuing monthly basis, the amount, if any, by which the
34 total available amount of all other appropriations to that
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1 retirement system for the payment of State contributions is
2 less than the total amount of the vouchers for required State
3 contributions lawfully submitted by the retirement system for
4 that month under Section 18-140 of the Illinois Pension Code.
5 (e) The continuing appropriations provided by this
6 Section shall first be available in State fiscal year 1996.
7 (Source: P.A. 88-593, eff. 8-22-94.)
8 Section 75. The State Mandates Act is amended by adding
9 Section 8.21 as follows:
10 (30 ILCS 805/8.21 new)
11 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
12 and 8 of this Act, no reimbursement by the State is required
13 for the implementation of any mandate created by this
14 amendatory Act of 1997.
15 Section 80. No acceleration or delay. Where this Act
16 makes changes in a statute that is represented in this Act by
17 text that is not yet or no longer in effect (for example, a
18 Section represented by multiple versions), the use of that
19 text does not accelerate or delay the taking effect of (i)
20 the changes made by this Act or (ii) provisions derived from
21 any other Public Act.
22 Section 85. Effective date. This Act takes effect upon
23 becoming law.".